[fa icon="calendar"] 04.11.2017 / by Rory Williams
Florida’s future is looking brighter than ever. The state economy has made a remarkable recovery in the last five years since the recession. So what exactly can we expect to see in 2017? Here's the Florida economic forecast for the coming year:
Tourism Will Continue to Bring Strong Revenue
Although the strong U.S dollar has made it more expensive for international travelers to visit Florida, tourism will remain a top source of revenue for the state. Estimates indicate that over 28 million visitors came to Florida in the third quarter of 2016, which was a 5.2 percent increase over the same period of the previous year. The forecast for 2017 is that we will see an overall growth rate of around 4.5 percent annually.
Single-Family Construction Will Gain Momentum
Residential construction has picked up over the past few years, though it still hasn’t quite reached pre-recession levels. In the third quarter of 2016, single-family building permits were up 9.1 percent from the previous year while multi-family construction was down 12.2 percent. More and more job seekers will move to Florida, boosting home building and home sales, as employment rates rise and personal income continues to grow.
South Florida Is the Place to Be
Commercial real estate is still seeing big money deals in South Miami, including multi-million dollar purchases of shopping malls and retail centers. Miami is still the place to be for global companies that are looking to reach the Latin American market.
Employment Rates Will Rise
Florida’s labor market will continue to make a strong comeback and is expected to exceed the recovery rate of the national job market. Industries that will see the most growth include construction, professional services, leisure & hospitality, education & health services, and transportation & utilities.
Retail Sales Will Increase Along with Personal Income
As employment rates rise, so will real personal income. Income growth is expected to increase by 5.5 percent between 2016 and 2019. Florida’s growth rate in this area will outpace the national average by around 0.5 percent over the next four years. This also means that retail sales will continue to grow at a pace of 4.5 percent across this same timespan.
Florida's Recovery Rate Will Exceed the Rest of the U.S
As measured by the Real Gross State Product, Florida’s economy is predicted to expand at a rate of 2.9 percent between 2016 and 2019, exceeding the national average for U.S. real Gross Domestic Product growth. By 2018, the state economy is expected to break the $1 trillion mark and hit $1.074 trillion in 2019.
Our Future is Bright
The outlook for Florida’s economy in 2017 is bright. As job and income growth continues to accelerate, job seekers will migrate to the state and give a boost to both commercial and residential real estate. Tourism will also remain a major source of revenue, despite the increasing costs for foreign travelers.