Tennessee economy making slow, steady progress

Tennessee’s economy is growing again, but it will take years to completely bounce back from the recession, University of Tennessee economists said today in their annual report to the governor.

“While recessions are a natural part of the business cycle, the length and depth of the current cycle has been unprecedented. The decade ahead will represent a period of significant adjustment and restructuring for both the state and national economies,” Matt Murray, CBER associate director and author of the study, said in a prepared statement.

Highlights of the 2011 Economic Report to the Governor prepared by UT’s Center for Business and Economic Research include:

— Tenenssee will see 1.3 percent job growth this year. Unemployment will fall to an estimated 9.1 this year and 8.8 percent in 2012, but it will be 2014 before the jobless rate returns to pre-revession levels.

–Sales tax revenue is expected to grow 5.2 percent in 2011 and 4.5 percent in 2012.

— Foreclosure rates are expected to remain elevated in Tennessee, with an additional spike likely to take place in this current quarter of the year.

— Nominal personal income — the sum of wage and salary disbursements, proprietors’ income, personal dividend income, personal interest income and transfer payments to persons — is expected to grow 4.5 percent in Tennessee this year, compared to 4.9 percent growth for the U.S.

Check out the complete report here:

2011 Economic Report to the Governor