Predicting Virginia’s Economic Growth
Three recent reports predict the Commonwealth’s economic growth will slow next year, including a forecast from UVA’s Weldon Cooper Center that expects GDP to increase by just 1.0% in 2026.
This aligns with a nationwide report from Moody’s Analytics, which included Virginia as one of 22 states that are “in or close to a recession.”
More than 900 furloughed federal workers filed for unemployment benefits in the first two weeks of the month, according to the Virginia Employment Commission. They will have to repay any benefits if they receive back pay when the federal government reopens.
About 189,000 people, 4.7% of Virginia’s workforce, are employed by the federal government. Inflation remains a concern, as food prices increased 1.4% year-over-year through July, with a notable 6.5% rise in the prices of meat, poultry, fish, and eggs.
Some experts pushed back, however. Secretary of Finance Stephen Cummings said Moody’s assessment “undervalues the state’s inherent economic resilience,” and Sonya Waddell, vice president at the Federal Reserve Bank of Richmond, noted that the state hasn’t seen a jump in unemployment claims, widespread layoffs, or a drop in state revenue.
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