Raleigh riding out tough times with modest growth


July 24, 2012 9:41:53 AM PDT
As the nation continues to deal with the economic struggles, it appears at least Raleigh is weathering the storm well.

The capital city could even see moderate economic growth this year as well as continued job growth.

That's according to the latest economic outlook from Mekael Teshome, PNC's economist for the Southeast, who made a presentation at the Greater Raleigh Chamber of Commerce's Board of Advisors meeting Tuesday.

"There's a lot of demand generated by population growth. Also, longer term business costs are low, when compared with other metropolitan areas," Teshome explained.

Teshome said Raleigh's economic recovery is fueled in part by reliable drivers such as education, healthcare, professional services, and consumer-driven retail.

He also predicts the Raleigh metro area will likely outperform the rest of the country in job growth.

"There's an educated workforce, low cost environment, and strong demographics that underpin our long term, positive outlook," said Teshome. "The private sector is adding jobs at a very healthy rate, even if it's cooled off from previous quarters. But cuts to government employment are weighing on topline growth."

Teshome said the stage is being set for house prices to recover as single family home sales pick up and the continued low level of building and permitting absorbs outstanding inventory.

"The local housing market is not nearly as depressed as we see elsewhere in the country. Sales and construction are not down nearly as much as in other metro areas," he explained.

Classifieds | Report A Typo |  Send Tip |  Get Alerts | See Click Fix
Follow @abc11 on Twitter  |  Become a fan on Facebook

Load Comments