ECONOMIC DEVELOPMENT CORP. REPORTS TIMES ARE BAD, BUT NOT QUITE -- LOS ANGELES ECONOMY WILL RECOVER IN 1993
ECONOMIC DEVELOPMENT CORP. REPORTS TIMES ARE BAD,
BUT NOT QUITE -- LOS ANGELES ECONOMY WILL RECOVER IN 1993
LOS ANGELES, July 20 /PRNewswire/ -- Today, the Economic Development Corp. released its 1992/1993 Economic Forecast for the Los Angeles Five-County Area reporting that economic recovery will be delayed until 1993.
At the 67th Annual Western Economic Association International Conference held on July 11, 1992, EDC's Chief Economist Jack Kyser stated, "Due to an unusual convergence of forces, the Los Angeles area is facing a non-traditional, slow recovery from the national recession. The job forecast for Los Angeles County has been revised downward, from a loss of 55,000 to 70,400."
The EDC reports that there are many factors impeding the area's economic recovery causing California to undergo a major systematic restructuring which few states or regions in the United States have ever had to cope with. These factors include the 1990-1992 national recession, major restructuring of key industries, business flight from California to more attractive environments, the King verdict riots, and the "Inflationary Bubble" Wind-down -- the building frenzy of the late 1980s that has almost come to a complete halt.
Despite these problems, there are many positive signs for the area's economy. Engineering and environmental services, as well as the health service industries are recording steady growth. Apparel design and manufacturing will benefit from increasing consumer spending, and international trade will be comparatively strong in 1992. In addition, the motion picture/television production industry is rebounding, and the multiple mass transit projects under way continue to benefit the local economy.
Kyser concluded that "the challenges facing the Los Angeles area are especially daunting, and require a whole new approach to problem solving." These challenges include bringing together the "communities" of the area, making meaningful efforts to improve the environment for business in the state and the region, creating "wealth-creating jobs," coping with a shift in the economic base of Southern California, improving the image of Los Angeles and realizing that there is no "silver bullet" quick-fix, simple solution to all our challenges.
The current media reports on the economy have been rather grim, but it is not over for the economy. Stated Kyser, "The L.A. economy is like a Timex -- it takes a licking but keeps on ticking."
/CONTACT: Jack Kyser of Economic Development, 213-462-5111/ CO: Economic Development Corp. ST: California IN: SU: AL-CH -- LA015 -- 0762 07/20/92 12:50 EDT