MassBenchmarks: Boston region pacing state growth

MASSACHUSETTS IS growing at its strongest pace since the late 1990s, according to the MassBenchmarks editorial board.
MASSACHUSETTS IS growing at its strongest pace since the late 1990s, according to the MassBenchmarks editorial board.

BOSTON – Massachusetts is growing at its strongest pace since the late 1990s, according to the MassBenchmarks editorial board. The board’s opinion, delivered in an email Thursday, noted that the severe winter weather had only a “transitory, and ultimately minor, impact on economic conditions in the Bay State.”
The commonwealth’s strength in knowledge-intensive sectors of the economy are driving the increase in the gross state product, which the editorial board said was exceeding the rate of expansion of the nation. Among the professions cited as continuing to exhibit strong hiring are: architectural, engineering and specialized design services; computer services; computer systems design; consulting services; research services; software development; and other professional, scientific or technical services.
The MassBenchmarks board also noted that with a few exceptions, Lowell and Worcester among them, the growth has been restricted to the region inside the Interstate 495 beltway around Boston.
At the same time, the state’s growth and the past winter’s extreme weather are identifying challenges going forward. For one, housing costs have risen so much that they are restricting the ability of employers in the region to attract the highly educated workers they require. And the transportation infrastructure was revealed to have many issues during the winter, having to shut down for days on end in the Boston metro area just at the time that it was needed most.
In addition, inadequate energy supplies are creating barriers for economic growth in some of the lower-performing region’s especially in the west of the state.
The editorial board said that while international issues, from the Greek and Puerto Rico debt crises to the slowing growth among major markets for U.S. goods and services, were beyond the control of Bay State leaders, investments in infrastructure and education are essential to keep the economic momentum on track.
The journal, which is published by the University of Massachusetts Donahue Institute in cooperation with the Federal Reserve Bank of Boston and is managed by the institute’s Economic and Public Policy Research unit, released the summary of the editorial board’s June 25 meeting, with the caveat that the opinion reflects a consensus of the board, even if not all members agree on every detail.

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