Wed, Feb. 16, 2011 (Media
“Growing Together –
Japan and LA County Study
LAEDC Report Says SoCal, California, U.S. Economic Recovery is Underway,
Stronger Growth in 2012
In L.A. County, international trade, entertainment and tourism leads
separate report shows striking economic and personal ties with Japan
Angeles — The
economic recovery is under way led by increased international trade and growth
in the high-tech sector, entertainment and tourism, according to the 2011-2012 Economic Forecast and Industry
Outlook report released today by the Kyser Center for Economic Research at
the Los Angeles County Economic Development Corporation (LAEDC).
The Los Angeles economy “appears to be past the
bottom of the recession and is starting up the recovery path during 2011 and
2012,” said LAEDC Chief Economist Nancy D. Sidhu, Ph.D. “Many industries are
back in the black and employment is rising in some areas.”
Imports and exports have
rebounded around the world. Increased international trade activity in 2011 will
benefit the ports of Los Angeles and Long Beach, which both posted strong years
in 2010. Hiring is also expected to grow as well for the region’s tourism and
entertainment sectors as a result of increased filming and more visitors to the
region, helped by the new convention center hotel at L.A. LIVE.
However, there is little
likelihood the housing sector will escape another difficult year, even though
2011 is expected to bring some improvement. Housing activity will only see
incremental improvement even though it has improved from the 2009 lows.
California, which had the second highest
unemployment rate in the country in 2010 at 12.5 percent, will see employment
growth in 2011. However, much like the national picture, California’s jobless
rate will remain relatively high, with the LAEDC forecasting an average
unemployment rate of 12.1 percent this year and the rate coming down to 11.5
percent by next year.
“We project that the California and U.S. economies will grow moderately in
2011 and 2012,” said Sidhu. “But the recession was so deep, 2011 won’t feel all
that good despite improvements in most industries. However, the state is headed
in the right direction, and the economy will seem even better by 2012.”
The U.S. unemployment rate, currently at
9.4 percent, is forecast to decline to nine percent in 2011 and reach the low
eights in 2012. Gross domestic product is picking up, although moderately,
while interest rates are expected to rise in 2012.
Overseas, LAEDC economists
see a two-speed recovery where advanced economies experience moderate growth in
2010 while emerging and developing economies experienced very robust growth. Emerging
Asia will continue to lead in the
global recovery in 2011, albeit at a somewhat slower pace. China and India have experienced outstanding
economic growth as they also led the global recovery in 2010.
Growing Together report highlights L.A. County’s personal and economic ties with Japan
The LAEDC also released
a separate, new report, “Growing
Together – Japan and Los Angeles County”. The report describes many
of the close ties that have developed between Los Angeles County and Japan, the number one source of foreign
direct investment into L.A. County.
U.S. – Japan trade has increased dramatically
over the past 50 years jumping from $3.2 billion to $211 billion at its peak in
2000. Japan is the second largest trading
partner of the Los Angeles Customs District with the ports of Los Angeles and Long Beach together handling nearly 25
percent of total trade between Japan and the U.S. The report also documents the
growing importance of foreign direct investment in this relationship, reviewing
both investments made by Los Angeles area business firms in Japan and Japanese investments in Los Angeles County.
To discuss their investments
made in the region, the LAEDC’s Economic Forecast event held at the Los Angeles
Marriott on Feb. 16 features a panel of speakers from well-known Japanese
companies. Representatives from Honda Motors, Union Bank and Yakult, makers
of probiotic beverages, will discuss the significant impact of Japanese companies
on the L.A. County economy. For more information about
the first time US JAPAN Study, visit LAEDC.org/.
About LAEDC (www.LAEDC.org)
The Los Angeles County Economic Development Corporation (LAEDC), the region’s
premier economic development organization, is a private, non-profit organization
established in 1981. Its mission is
to attract, retain, and grow businesses and jobs for the regions of Los Angeles County.
Since 1996, the LAEDC has helped retain or create more than 163,500
jobs, providing $8 billion dollars in annual economic impact and more than
$136 million dollars in annual tax revenue to support local government and
[Editors: The LAEDC Annual Economic Forecast report can
be downloaded at http://laedc.org/newsroom/releases/2011/Forecast-2011-02.pdf.
The Japan study can be downloaded at http://www.laedc.org/newsroom/releases/2011/GrowingTogether_Japan_2011.pdf.
please call George McQuade or Aida Mayo for interviews: 818-340-5300
or 818-618-9229 or email Publicity@MayoCommunications.com.]