An economic Rebound for California! What does this mean for the state’s high rising real estate market?
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alifornia was one of the states to take aggressive action to protect its citizen from the Coronavirus pandemic. And this did not only protect the citizens but also made sure that the economy was still afloat. In addition, the efforts against the pandemic set the stage for a much faster recovery, something that cannot be said of some states and countries. In fact, California is showing agility in recovery leading the nation according to a report from UCLA. Perhaps aiding in the faster recovery is California’s strong technology and white-collar jobs. Still, to add to that, there has been a relatively rapid boost in home building, and all these factors coupled together buoy the economy of California and ultimately offset the slower return from the touristdependent leisure and hospitality sector.
No doubt that the Covid-19 pandemic was one of the worst health crises we faced this decade but the numbers seem really promising. Nationally, the UCLA forecast shows that the gross domestic product will spike 7.1 percent this year tapering to 5.0 percent in 2022 followed by s steady growth of 2.2 percent in 2023. What makes this a unique recovery is its rapid pace! It is even more remarkable if we compare this rate of recovery with the 2007-10 recession. However, there were some measures enacted which perhaps better explain the rate of recovery for both the state of California and the nation. Chief among them was the pandemic stimulus and the spending programs that were enacted by the government shortly after Covid-19 was declared a public health in the country.
“We never fully bounced back after a tepid response to the great financial crisis,” Feler said. “That led to negative economic, political, and social effects. So we learned a lesson. This time, we pumped a lot more money into the economy.”
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Leo Feler, a UCLA Anderson Forecast’s senior economist said “we are about to have one of the best years of economic growth that we’ve had since World War II.” This unparalleled growth while being recorded in most other states is a remarkable feat for the state that was once crippled by the Pandemic. “We’re looking at a boom time for the U.S. economy.”
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THE POWER IS NOW MAGAZINE | AUGUST 2021
