Tuesday, January 31, 2012

State, local economies will experience
slow growth in 2012, UK report shows

The Center for Business and Economic Research at the University of Kentucky’s Gatton College released its 40th annual economic report today.

Some of the key findings in the report are:

– The national, state, and local economies are expected to experience slow growth in 2012. The national economy is not expected to return to the growth rates of the mid-1990s until 2014 or 2015.

– Based on a number of economic, education, health, environmental, community, and governmental factors, Kentucky made minor progress relative to the nation and surrounding states between 1990 and 2009.

– Kentucky’s demographic patterns over the past decade do not bode well for regions in Eastern and Western Kentucky, while the state’s urban triangle grew faster than the United States as a whole.

– New or pending environmental regulations could have significant effects on the cost of electric power generation, and therefore on the price of electricity, which could have sizable negative effects on Kentucky’s state gross product and employment growth.

– Public-private partnerships are being used with increasing frequency in neighboring states to fund infrastructure projects, a trend that ultimately might be adopted in Kentucky.

– Many telephone companies charge much higher access rates for intrastate calls than for interstate calls, which results in an economic inefficiency.

– Invigorating the innovation, entrepreneurial and commercialization processes at universities can help bolster the economic growth of states and regions.

– Kentucky employers are acutely affected by ill health as Kentucky leads the nation in chronic disease prevalence, but viable strategies for integrating health promotion programs and initiatives can help improve the health of workers and be cost-effective for businesses.

– The health literacy of Kentuckians is low, but if increased could help improve the health of our citizens.

The report is one of the many ways the center fulfills its mandated mission as specified in the Kentucky Revised Statutes to examine various aspects of the Kentucky economy. It performs research projects for federal, state and local government agencies, as well as for private-sector clients nationwide.

The articles in the 2012 Kentucky Annual Economic Report cover a variety of issues that range from an economic forecast for Kentucky in 2012 to a detailed examination of demographic trends in our state to an examination of how to develop the intellectual capital within our universities into commercial enterprises to whether Kentucky has made progress over the last 20 years according to a number of economic, environmental, education, health, community and government trends. Other articles examine issues in transportation, economic inefficiencies in telephone access charges, the potential for higher electricity costs, wellness initiatives for organizations, and health literacy among Kentuckian — all important factors affecting Kentucky’s economy.

“Collectively these articles paint a picture of continuity and change for Kentucky’s economy, its communities, and its citizens,” said center co-director Chris Bollinger. “For Kentucky to achieve broad prosperity and improve its per capita income, we will surely need to continue along the path of seeking educational excellence as well as economic innovation.”

“The rich body of data and analysis presented in the CBER Annual Report presents policymakers and citizens alike with knowledge they can use to improve the quality of life of Kentuckians and become better informed on economic issues,” said Gatton College Interim Dean Merl Hackbart.

Digital copies of the Center for Business and Economic Research 2012 Annual Economic Report can be obtained at the center’s website or by calling 859-257-7675 or sending email to cber@uky.edu.