Tucson and Phoenix Will Have Growing Economies in 2017

Get ready, Arizona. Economists believe the Phoenix and Tucson have bright futures as we enter into 2017.

The Director of Eller Economic and Business Research Center, George W. Hammond, from the University of Arizona believes that 2017 will boost the economy in Phoenix. Hammond said, “Phoenix will grow a bit faster over the next couple of years. In part, (the growth will be) driven by sustained U.S. growth. Increased residential mobility across the U.S. will also benefit the Phoenix metro area. Overall, the outlook is certainly positive for Phoenix. It’s going to be the fastest growing region of the state, and will really drive overall state results going forward.”

Hammond believes Phoenix will not be the only city in Arizona that will have a great economic. He also has Tucson on the list to continue to add jobs at a quicker pace than in 2016. Over the years, southern Arizona’s economy has been poor, and this news is cause for excitement.  

Hammond spoke about the encouraging news for Tucson: “Major federal fiscal drag related to the sequester and other budget cuts (are disappearing). Those impacts really slowed Tucson from 2013 to 2015, but now those seem to be over and we’re picking up some steam. I think there’s even the chance, with the new administration, that we’ll see somewhat stronger overall federal spending on defense and border security, and that would help Tucson grow faster as well.”

If there is one area of concern for the state of Arizona, it deals with the Mexican Peso. Its value is down next to the U.S. Dollar and it has been affecting the economy of Arizona.

Hammond spoke to this concern by saying that “Arizona’s exports to Mexico are down just over 10 percent so far this year compared to last year, and we’ve also seen what looks like a decline in Mexican visitors coming to Arizona to shop and to vacation here.”

No matter the concern with the Mexican Paso, Arizona can look forward to a boosted economy in 2017. 

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