The Valley Industry Commerce Association presented its annual economic forecast Friday at the Hilton Los Angeles in Universal City.
The half-day conference included an overall status of the nation’s and state’s economic health as well as breakout sessions on issues such as the housing/construction and tourism industries.
Eugenio Aleman, senior economist at Wells Fargo, said the national deficit is now at $640 billion and it’s expected to climb to $1 trillion. The U.S. economy is growing at 2 percent annually since the Great Recession, and that’s about 1-plus percent less growth than before the Great Recession.
Incomes, however, are not growing, he said.
“Unless you have growth in income, economic growth may dip to below 1 percent,” he said.
Jeffrey Kravetz. regional investment director the private client reserve of U.S. Bank, said California's gross domestic product is 2.6 percent, number sixth in the world, and the state contributes 14 percent of the nation’s GDP.
While unemployment rates might be down in the urban areas, 10 percent of counties in the state have unemployment rates above 9 percent and two had unemployment above 20 percent, he said.