April 24, 2024

Florida TaxWatch releases its 2021 Economic Preview Report

| 12/30/2020

Florida TaxWatch (FTW) today released its 2021 Economic Preview: An Uncertain Yet Hopeful Year of Growth. Floridians have plenty of reason to be cautiously optimistic as the state’s economic picture in 2021 appears mixed and uncertain. Although strong job creation will certainly aid Florida’s labor market recovery, personal income will not grow as rapidly for many families.

Florida TaxWatch President and CEO Dominic M. Calabro said, “As we close out a tumultuous year for Florida, defined by COVID-19 and its resulting disruptions to everyday life, we consider what may lie ahead. Overall, Florida’s economy in 2021 will be uncertain, influenced largely by pandemic changes, but there is reason to believe next year will be a hopeful year of growth for a state on the road to economic recovery. With several promising vaccines on the horizon and gradually improving labor market conditions, Florida looks poised to undergo the slow but steady process of economic rebuilding over the coming year.”

In 2021, the sectors with the projected fastest job growth will be Leisure and Hospitality (11.9 percent), Education and Health Services (8.1 percent), and Financial Activities (8.1 percent). Although third on the list, Financial Activities will be the fastest-growing economic sector in Florida over the 2020-2023 period thanks in part to the sector’s high telework feasibility, making it easier for employees to work from home. It should be noted, however, that the bulk of the job growth in Leisure and Hospitality will be due to companies reclaiming many of the jobs lost during the pandemic’s earlier months.

Despite solid job growth prospects, there are some indications that these benefits will not readily translate into the consumer market. The predicted decrease can be explained partly due to falling stimulus and unemployment payments for many families, which originally offset some of the recession’s impacts in 2020.

Finally, after posting an impressive showing in the latter half of 2020, Florida’s housing market is predicted to remain a robust seller’s market in 2021 as declining inventory and strong demand drives home prices to new highs.

You can read the full report here.

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