PORTLAND, Ore. (KOIN) — Oregon’s economy will grow in the second half of 2020 but it will certainly not grow fast enough to recoup the losses brought on by the coronavirus pandemic, the state’s Office of Economic Analysis said in a revenue forecast released Wednesday.
“While this recession is extremely severe – the deepest on record in Oregon with data going back to 1939 – it is expected to be shorter in duration than the Great Recession. The economy should return to health by middecade,” the document states.
Read the full Economic Forecast at the bottom of this article
It didn’t take an economist to know Oregon — and each of the other 49 states — is in a recession. But the official Oregon economic forecast said, “Recovery will take years.”
However once some of the stay-home/social distancing orders are slowly lifted, the “pent-up demand” from consumers will pull the state toward recovery. And as consumers spend, business proftis will encourage firms to re-hire people.
STATEMENTS FROM OREGON LEADERS
“The latest forecast for state revenue makes it clear that we have tough choices ahead. We will need to tighten our belts. I am working with legislative leaders to preserve critical state services, find efficiencies, and prepare for potential budget cuts. Make no mistake, the budget gap created by this pandemic is too large to bridge without additional Congressional action. I am thankful for the work of our congressional delegation to secure federal funding for Oregon in the relief packages Congress has passed so far. But those funds only address a fraction of our current need, especially since we are not permitted to use the funding we have received so far to address state budget shortfalls.” — Gov. Kate Brown
“These numbers show the beginnings of the impact the pandemic will have on Oregonians, our small businesses, and our economy for years to come. It’s incredibly sobering. There are no easy solutions. We need to have thoughtful and inclusive decision-making on the state budget as soon as possible to begin to support workers and businesses, ensure access to critical state services, and move our state forward in a responsible way. The legislature should meet as soon as possible for a special session to make these decisions.” — Labor Commissioner Val Hoyle
“We must remember that budgets are not just numbers on a spreadsheet. Budgets are about people, our communities, and our collective well-being. We need to take the lessons
learned from the Great Recession and do more to protect vulnerable Oregonians and rebuild an economy that promotes success for everyone. Fortunately, our state is in a far better financial position than it was at the start of the Great Recession. We have strong reserves that should be tapped early to avoid additional damage to our economy. I also believe increased bonding for public infrastructure will help to jumpstart the economy and put people back to work.” — House Speaker Tina Kotek
“Oregon families are hurting and have been forced to make significant budget cuts. Now the state must take reasonable actions to bring the budget in line with declining revenues. The best approach going forward is for the legislature to do all we can to support a full economic recovery for hardworking Oregon families across this state, who were disproportionately harmed by the governor’s executive shutdown orders.” — House Republican Leader Christine Drazan