R.I. Current Economic Indicator hints at double-dip recession
RHODE ISLAND'S Current Economic Indicator increased at a 1 percent annualized rate - slower than both the U.S. GDP growth and the New England growth - during the first quarter of 2012. For a larger version of this chart, click HERE.
SMITHFIELD – Rhode Island’s Current Economic Indicator increased at a 1 percent annualized rate during the first quarter of 2012, according to a report released Thursday by Bryant University’s Center for Global and Regional Economic Studies and the Rhode Island Public Expenditure Council.
According to the report, the Ocean State’s economy has been “stuck” since the first quarter of 2011 and will expand at a pace slower than the current 1 percent annualized rate through the third quarter of 2012.
The report said that the figures provide “little hope that the state economy will turn around any time soon,” and suggests that Rhode Island is at an increased risk of a double-dip recession.
“The indicator signifies that Rhode Island’s economy is stagnating, and that growth is predominantly the result of external factors, which are also showing signs of slowing,” John Simmons, executive director of RIPEC, said in a statement.
“While there are some positive signs, the question is whether the economic conditions in the state will continue to improve, and at what rate,” added Simmons
The report suggests that – in order to avert prolonged economic stagnation – state and local governments and businesses engage in coordinated efforts to stimulate the economy.
Rhode Island’s economy continues to expand at a rate significantly slower than both the regional and national average.
The U.S. Gross Domestic Product increased at an annualized rate of 2.2 percent during the three months ended March 31 and the New England economy expanded at an annualized rate of 3.3 percent during that same period.