This is the Washington Economics Group Summer Economic Update entitled Miami-Dade Economic Activity Expanding Strongly in late Summer 2014. Please visit www.weg.com for more.
This is the Washington Economics Group Summer Economic Update entitled Miami-Dade Economic Activity Expanding Strongly in late Summer 2014. Please visit www.weg.com for more.
This is the Washington Economics Group Summer Economic Update entitled Miami-Dade Economic Activity Expanding Strongly in late Summer 2014. Please visit www.weg.com for more.
MIAMI-DADE ECONOMY EXPANDING STRONGLY IN LATE SUMMER OF 2014 Summer Issue-2014
The Miami-Dade Economy (MDE) is performing above Florida and National averages, led by solid growth of key industries and a revival in construction activity. Indeed, the whole South Florida marketplace, including Ft. Lauderdale and West Palm Beach metro areas, is leading the State in employment growth and overall economic activity. The table below highlights payroll employment growth in the MDE through July, rank-ordered by growth rates over the 12 months ending in July 2014. Miami-Dades Payroll Employment Growth Leading the State (July 2014/July 2013) Sector Over-the-Year Change Level Percent 1. Construction +2,300 6.9% 2. Health Services +2,600 5.8% 3. Manufacturing +2,100 5.8% 4. Transportation/Wholesale Trade +3,500 5.5% 5. Financial Activities +3,900 5.4% 6. Retail Trade +7,200 5.3% 7. Leisure/Hospitality +5,900 4.8% 8. Professional and Business Services +4,400 3.0% Sources: Florida Department of Economic Opportunity (DEO) and The Beacon Council.
As the data above demonstrates, most of the key industries of the MDE are enjoying employment expansion. In essence, the MDE economic recovery is on a sound footing. We expect this positive trend to continue for the remainder of 2014, given the widespread momentum of employment growth in top industries of the MDE. This, in turn, translates into greater consumer and investment spending throughout the economy.
Looking beyond the next several months, there are a number of possible risks to the strong growth of economic activity. These potential downside risks should be considered in business plans for 2015. Among recent developments are the following:
The Washington Economics Group, Inc. August 19, 2014 Page 2 The Federal Reserve is expected to begin slowly increasing short-term interest rates in early 2015. Indeed, Quantitative Easing #3 (QE3) is expected to end in October of this year. Global economic activity, a key external driver of the MDE, has started to slowdown in mid-2014. The European Union economic recovery has stalled, while geo-political risks of an aggressive Russia have increased uncertainty. Finally, a few key markets of the MDE in Latin America are also registering slower growth this year, with little prospects for a strong pickup in economic activity during 2015. This is highlighted in the table below: Key Trade Partners of MDE Experiencing Slower Economic Conditions Country GDP Growth 2014 Comments - 2015 Brazil 1.4% Modest pickup Argentina FLAT Recession likely Chile 3.0% Modest pick up Peru 4.8% Modest pick up Venezuela -0.5% Deep Recession Source: UN ECLAC and Comments-2015 by The Washington Economics Group, Inc. (WEG)
There are, however, bright spots in the economic landscape of Latin America and the Caribbean, with strong growth prospects for 2015. Among these are Colombia, Costa Rica, Guatemala, Mexico and the Dominican Republic. In conclusion, the business environment in the MDE has improved in the first half of the year. There is positive momentum for continued strong economic expansion in the second half of 2014, led by the construction, travel and hospitality, business services and retail trade industries, among others.
By: The Washington Economics Group, Inc. Summer Issue - 2014