In the absence of exogenous shocks (such as a war or another jump in oil prices), one can be optimistic about the Connecticut economy in 2023.A major reason is that — thanks to the federal COVID money given to the state — we no longer have a budget deficit that for a long time seemed […]
In the absence of exogenous shocks (such as a war or another jump in oil prices), one can be optimistic about the Connecticut economy in 2023.
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A major reason is that — thanks to the federal COVID money given to the state — we no longer have a budget deficit that for a long time seemed to be a permanent feature of our government and a drag on the economy.
Another reason is the rejuvenation of the real estate market that had been stagnant for at least a decade. The extension of the moratorium on the gas tax is also a hopeful sign for the economy.
Government officials, who wish to portray Connecticut as a progressive state, should permanently eliminate the gas tax that is regressive and disproportionately hurts low-income people.
Connecticut has a labor shortage just as the rest of the country does. Hence, in 2023, Connecticut should experience a net job gain, probably around 5,500.
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This number is lower than the jobs added in 2022 because, as we emerge from the pandemic economy, job growth will slow down.
