Economists predict the main growth trends of the state’s economy

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alabama map

By WVUA 23 Digital Reporter Kyrsten Eller

Alabama’s economy could see an increase in growth this year as the state continues to reopen to commerce in the wake of COVID-19, according to researchers at the University of Alabama.

AU economists predict the state’s economy will grow 3.4% to $213.5 billion of Alabama’s gross domestic product. This follows growth of 4.8% in 2021.

“A growth rate of 3.4% is great, considering the growth rate for years before 2021,” said Ahmad Ijaz, executive director of the center. “It is likely that we will revise this upwards, depending on how the data comes in from Q4 2021 and Q1 2022.”

Part of the Culverhouse College of Business, the AU Center for Business and Economic Research has produced forecasts of economic activity in Alabama since 1980.

The forecast covers Alabama’s gross domestic product, employment, and revenue by industry group and is published in the annual Alabama Economic Outlook.

“The rate of price increases in 2022 might slow some down, but we will still see price levels increase in 2022,” Ijaz said. “Hopefully it won’t be as big as 2021, but price changes will continue, albeit at a slower pace, until supply issues and labor market issues can be resolved.”

For state tax collections, the researchers predict that economic growth and federal recovery money that has not yet been spent will continue to increase.

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