PHOENIX — The Governor’s Office of Strategic Planning and Budgeting (OSPB) today released its 2018 Summer Economic Outlook projecting strong and accelerating growth for Arizona in the coming years. Compared to projections given at the end of 2017, all major indicators suggest significant improvements in Arizona’s rate of economic growth. The Outlook is the latest in a series of positive reports by state fiscal observers, including a recent update from the Joint Legislative Budget Committee (JLBC) which noted Arizona has seen record-breaking General Fund revenue numbers.
According to the Summer Economic Outlook, current indicators suggest the nation’s gross domestic product (GDP) will reach a growth rate of 3 percent or more — a notable increase from the average 2.2 percent GDP growth experienced after the recession. Similarly, Arizona is expected to grow faster than both the nation as a whole, and its own post-recession average.
In addition, rising personal incomes have led to increased consumer confidence. With consumers spending more, state revenues have experienced solid growth. Through June, OSPB estimates Arizona’s General Fund revenues have increased by 7.1 percent over the prior year and more than $120 million above the state’s recently enacted budget. JLBC estimates revenues grew approximately $400 million above it’s January Baseline forecast. And, Arizona’s total employment is at an all-time high with nearly 240,000 new jobs created since 2015.
“With increased consumer confidence, low unemployment, rising wages and record state revenues, its clear — Arizona’s economy is booming. Arizona owes its continued economic growth to the hard work of our state’s entrepreneurs and job creators,” said Governor Ducey. “With a growing state economy, Arizona will be able to put more dollars toward important statewide priorities like public safety and education.”
Read the full OSPB Summer Economic Outlook HERE.
See the latest JLBC update detailing Arizona’s recorded revenue numbers HERE.