Sac Region's Economic Forecast: Down, then (eventually) Up

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(Sacramento, CA)
Wednesday, January 14, 2009

Here’s the good news, courtesy of Sac State’s dean for the college of business administration, Sanjay Varshney:
Varshney: “Our recession really began in the 2nd quarter of 07 and is likely to continue to the end of 09 or early 2010.” 
How’s that good?  Since our recession started earlier, Varshney thinks it could end earlier, too.  But the bad news is, that’s the best-case scenario.  And before the economy bounces back, Varshney says, unemployment could top 10 percent – up from the current 8 percent and nearly twice what it was last year.
But Varshney says the region should use the recession to its advantage.
Varshney: “I would view this current economic cycle as a great opportunity to rethink how we do business, find new ways of doing business, find new ways of stimulating the economy.” 
Varshney also says Sacramento must find a way to keep its brightest minds in the area.  Now, he says, too many of them leave after graduating college.