Florida is outperforming U.S. in job and income growth and population migration, two economic experts said.
TAMPA, Fla. – Even as the U.S. economy posted an unexpected strong performance last year, Regions Bank Chief Economist Richard Moody and Chief Investment Officer Alan McKnight expect 2024 economic growth to be slower.
Moody says that the labor and supply side expansion of the 2023 economy raises concerns about how much capacity remains for growth in 2024.
Florida’s markets are expected to find a new normal in terms of growth after three years of explosive expansion, which means the outlook is still positive. Moody added that Florida’s large metro areas continue to be “some of the hottest markets in the country,” but “once the dust settles, there’s still outperformance there.”
Florida is among the states with favorable demographic profiles, including strong business migration, lower costs of living, lower labor costs, strong population inflow and business-friendly regulatory environments. As a result, Florida has outperformed other parts of the United States in terms of income and job growth.
In Tampa, growth in logistics, financial services and high tech were ahead of other Florida cities, leaving Tampa poised for more normalized growth. McKnight also said the markets are too optimistic about the number of rate cuts coming from the Fed this year, especially if inflation stays above the target of 2%.
Source: Tampa Bay Business Journal (01/23/24) Georgacopoulos, Christina
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