Economic Forecast for 2020 and Beyond
At the start of 2020, most investors and economic analysts expected the 11-year bull market to continue. And then the spread of COVID-19 changed everything. As a result of the pandemic, the global economy is projected to contract sharply by 3% in 2020. In addition, there is a huge amount of uncertainty about the future of the outbreak and the economic impacts associated with it. While the epidemic’s economic impact is difficult to predict, we are on track for a major downturn. The question is how bad and for how long.
Economic experts Jim Rounds, George Hammond, Dennis Hoffman and Steve Zylstra joined the Arizona Technology Council’s May 2020 podcast to share their assessment of the damage, needed measures for economic growth and the prospects of recovery in the coming months. Featured guests discussed Arizona’s economic recovery, the hard-hit industries that will take the most to recover, expected growth rates for Arizona, how 2020 compares to the crash of 2008, as well as how can IoT and renewable energy help kickstart an economic recovery.
“If we can maintain high-wage jobs in the technology sector, will can expect to see a quicker resurgence in the lower-wage jobs,” said Jim Rounds, president of Rounds Consulting.
“It’s difficult to know what consumer behavior will be like post-COVID,” added Dennis Hoffman, economics professor and director of the Seidman Research Institute at the W. P. Carey School of Business at Arizona State University. “Overall retail is hanging in there with online shopping, but consumer behavior has definitely changed.”
These economic experts also discussed how can IoT and renewable energy can help kick-start an economic recovery.
“It’s certainly reassuring that Arizona is growing an IoT hub,” said Arizona Technology Council CEO Steve Zylstra. “Companies such as Avnet, Benchmark and Intel are very focused on IoT and it’s good to see a lot of academic research going on in that area.”
Zylstra added, “IoT and renewable energy are two growing policy areas for the Arizona Technology Council. I’m hopeful hopeful that Arizona’s energy sector will help drive growth for a quick economic recovery.”
“Although renewable energy hasn’t been a big news topic during the pandemic and the outbreak migration across the country, it’s good to see Arizona becoming a stronger leader in renewable and clean energy,” added Hoffman. “Without a doubt, the energy sector provides opportunity and it’s good to see Arizona at the forefront of clean and renewable energy.”
Overall, these experts agreed that multiple factors are still causing uncertainty for 2020 economic growth.
“Economic data is still sort of a moving target with things moving so rapidly,” said George Hammond, Economic and Business Research Center director and research professor at the University of Arizona’s Eller College of Management. “I’m optimistic that Arizona will outperform the nation. We have a good chance to see Arizona bounce back a bit quicker than other states.”
Economic Research Professor
University of Arizona
Arizona State University
President + CEO
Arizona Technology Council
About AZ TechCast
AZ TechCast is dedicated to covering innovation and technology in Arizona and beyond. Through the art of connected conversation, AZ TechCast’s guests will share their expertise, success stories, news and analysis about the region’s leading startups, companies and emerging technologies, as well as the latest industry trends and critical issues propelling the state’s growing technology ecosystem.
About Phoenix Business RadioX
Karen Nowicki is the owner and president of Phoenix Business RadioX. Amplifying the voice of business, Phoenix Business RadioX helps local businesses and professional associations get the word out about the important work they’re doing to serve their market, profession and community. A successful author, speaker and the creator of Deep Impact Leadership™ and SoulMarks Coaching™, Nowicki is a two-time recipient of the prestigious national Choice Award® for her book and personal development retreat. In addition, Nowicki has been an expert guest on regional TV and radio shows, including Fox Phoenix Morning Show, Sonoran Living, Good Morning Arizona, The Chat Room and Mid-Day Arizona. Recognized for her leadership and business acumen, she has been a regular contributor to many print and online magazines – publishing articles and blogs for business and education.