Economists Optimistic about Mass. Economy
BOSTON (AP) — A recent analysis offers “cautious optimism” that the Massachusetts economy will continue to grow modestly in the coming months, despite the threat posed by the automatic federal spending cuts that took effect this weekend.
The editorial board of MassBenchmarks, a journal published by the Donahue Insitute at UMass, forecasts a rebound in exports from the state now that the economies of two major trading partners — Europe and China — have begun to stabilize.
The economists also cite the improving real estate market and an unemployment rate that remains below the national average. They say the state has experienced a “reasonably healthy” recovery.
The federal budget sequester is expected to take a toll on key sectors of the Massachusetts economy, however, including companies and research facilities that rely on defense spending and grants from the National Institutes of Health.
Copyright 2013 The Associated Press.