Florida TaxWatch Economic Commentary
A sunny economic outlook for Florida in 2016
Improved job growth contributing significantly to the economy.
As we kick off 2016, Floridians can look forward to consistent growth in the Florida economy. As shown in the December 2015 Economic Commentary, Florida experienced strong job growth in 2015, adding nearly a quarter of a million jobs. Heading into 2016, Florida’s job market is widely expected to maintain its course as the Florida economy as a whole continues to strengthen.
One of the most commonly used metrics to measure a state’s economy is the Real Gross State Product (RGSP), which measures the value of economic output for a given state, adjusted for price changes stemming from inflation or deflation. Florida’s RGSP is expected to grow 3.1 percent in 2016, which is roughly a half a percentage point higher than the United States.1
While the expected growth of Florida’s economy in 2016 is great news, there are also positive signs for economies at the local level. Bloomberg Business compiled a list of the top 18 cities it predicts will have the most economic growth in 2016. Of the 18 cities on the list, nine were in Florida, including the top four, and six of the top ten, as shown in the table below.2The concentration of growth seems to be regional, as nearly all of the Florida cities on the list are located in Southwest or Central Florida. Small and moderate sized metropolitan areas in Florida have moved to the top of the list largely due to the fall of oil and gas hubs from the ranks, according to Bloomberg.
|Florida Cities Leading the Nation in Economic Growth2|
|Predicted Economic Growth|
|1.||Naples - Immokalee - Marco Island||4.9%|
|4.||Cape Coral-Fort Myers||4.5%|
|9.||Orlando - Kissimmee - Sanford||4.1%|
|14.||Port St. Lucie||4.0%|
1 Snaith, Sean. Florida & Metro Forecast. September 2015. U of Central Florida.
2 Roman, Erin. “These 18 Cities Will See the Most Economic Growth Next Year.” http://www.bloomberg.com/. Accessed 6 Jan. 2016.
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