Alaska News

Slight downturn predicted in latest Anchorage economic forecast

Uncertainty was the word of the day in Anchorage's business community as the Anchorage Economic Development Corp. unveiled its three-year forecast on Wednesday during a packed luncheon in a spacious ballroom in the Dena'ina Civic and Convention Center.

With the caveat that economic predictions often offer no greater certainty than a game of chance, AEDC President and CEO Bill Popp said the overall message was that some businesses would be tightening their belts in the next few years, but no significant economic downturn is in sight for Alaska's largest city.

"We are in difficult times from the perspective of where our community is going," said Popp, who leads the nonprofit membership association of businesses large and small.

He pointed to slight decreases in the corporation's outlooks for population and employment as evidence of flat to slightly negative growth. Oil prices, as many have already pointed out, will not likely return to levels high enough in the near-to-medium-term to jump-start any significant economic boost.

The outlook report, compiled by Anchorage-based economic consulting firm McDowell Group, did highlight some bright spots, including modest growth in the visitor and air freight industries.

The corporation often tries to find the silver lining in the face of discouraging economic news and concluded its report on a characteristic bright note.

"Anchorage is facing some challenges, but if history is any guide, the Anchorage economy will survive intact and emerge stronger than ever," it said.

Jeannette Lee Falsey

Jeannette Lee Falsey is a former reporter for Alaska Dispatch News. She left the ADN in 2017.

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