TAMPA, Fla. – Feb. 16, 2012 – A State Monitor report released by BMO Capital Markets Economics finds that the Florida economy gained momentum in 2011, but activity still “remains depressed in the wake of the housing bust.” Real GDP (gross domestic product) growth likely underperformed the national average again last year as it has for the past four straight years according to.
However, job growth continued to pick up, with nonfarm employment in December 1.6 percent above year-ago levels thanks to gains in real estate (+4.2 percent year over year), accommodation and food (+3.5 percent year over year) and retail (+3.1 percent year over year). Construction job losses moderated in 2011, but Florida employment remains depressed, hitting the lowest level on record in October and 50 percent below peak levels. The jobless rate was 9.9 percent in December, one of the highest in America, but still dropped 2.1 percentage points for the past year.
“Population growth picked up 1.2 percent in 2011 as net outward state migration appears to have stopped, but growth remains well below the pre-housing bust pace of more than 2 percent per year,” says Sherry Cooper, chief economist, BMO Financial Group.
Housing shows early signs of stabilization, but it does not yet add meaningfully to economic growth. The months’ supply of homes for sale has fallen sharply in Miami, Tampa and Sarasota, due to less construction and higher demand. While foreclosures declined in 2011, the foreclosure rate remained high.
© 2012 Florida Realtors®
Reprinted with permission. Florida Realtors®. All rights reserved.
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