2020 economic growth expected for Michigan

<p>Michigan State University’s <a href="https://www.canr.msu.edu/cea/">Center for Economic Analysis</a> sees further growth in the Michigan economy in 2020. This comes from the <a href="https://www.canr.msu.edu/cea/economic-forecast/">MSU Economic Forecast Model</a> that tracks and projects the economies of the state of Michigan and the metropolitan areas of Detroit-Warren-Dearborn and Lansing-East Lansing. <br>The model forecasts employment and wages by industry, economic output and total personal incomes based on economic conditions and projections at the national and regional levels.</p><p>On multiple occasions in this past year, it looked like a recession was just on the horizon. Leading indicators that have proved to be good predictors of a recession consistently triggered recessionary concerns. But many of those old predictors just don’t seem to work in this information-driven economy. The one predictor that trumps all – growth in gross domestic product – continues to point to further growth.</p><p>Regardless, parts of the economy are not doing so well. Manufacturing, in particular, had a rough year, leaving many to claim we are in the midst of a manufacturing recession. However, the national data suggest that while manufacturing activity has weakened, it is not in decline.</p><p>Trade relations were in the news throughout 2019. It’s hard to keep track, but the U.S. has imposed 10% to 25% tariffs on about $524 billion of imported goods from a slew of countries and commodities. (The U.S. imports about $3.1 billion annually.) It appears that the U.S. tariffs have not led to their intended effects of reducing imports and advancing domestic production. Rather, since the first quarter of 2017, imports have increased almost 4% over exports, exacerbating the long-term trade imbalance.</p><p>Consumers remain the driving force of this economy. Consumer expenditures make up about two-thirds of the overall economy and consumers remain poised to spend. Consumer debt remains stable and confidence remains high –