Economists Predict Optimistic Growth for Los Angeles

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The Los Angeles Economic Development Corporation has released its annual economic forecast for downtown Los Angeles. The report predicts positive economic growth, driven mostly by entertainment and tourism. Prospects for job growth are not as encouraging. Timothy Beck Werth has more on the surprisingly optimistic report.

Current forecast for the downtown LA area: economic crisis with a chance of light recovery by the end of the year. Unemployment highs will hover around 12.5 percent, with lows reaching an even 12 by 2011. That’s according to the Los Angeles County Economic Development Corporation, which has predicted growth for the downtown area over the next year. Chief Economist Jack Kyser says the entertainment and tourism sector will drive growth.

“The new convention center hotel that just opened up this past Monday at LA Live, and the LA Convention Bureau has been very successful at booking business shows into that facility, so that means you’ll have more business travelers in and around downtown,” Kyser said.

Kyser also believes the Exposition Boulevard light rail will bring more Angelinos into the area as well. Unfortunately, the report says Los Angeles will experience what’s called a jobless recovery. Since job creation usually lags behind recovery, unemployment will remain high even as the economy gets its legs back.