Holcomb Shrugs Off IU Forecast of Slowing Growth


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Holcomb Shrugs Off IU Forecast of Slowing Growth

Kelley School forecast sees growth downshifting as trade war takes toll; governor says economy is envy of other states

(INDIANAPOLIS) - Governor Holcomb is brushing aside IU economists' predictions of a sputtering economy next year.

The annual business outlook forecast from the Kelley School of Business calls for just 1.5% growth next year. Forecasters say companies are holding off hiring because of worries about a constantly changing trade policy. Holcomb responds there's been trade turmoil this year as well, and Indiana's economy remains strong, including record foreign investment.

Holcomb says his only concern about Indiana's economy is one he mentions often: the state doesn't have enough skilled workers for the jobs Indiana companies want to fill. But he dismisses questions about whether agencies might have to trim spending to stay within the budget enacted in April. He quotes the old joke about economists having predicted "10 of the last four recessions," and notes even a forecast IU describes as "anemic" still predicts growth.

The official state budget forecast for next year predicts 1.7% growth. But that forecast is for the fiscal year, which doesn't start till July. IU's forecast is for the calendar year. The state forecast predicts 2.7% growth in the current fiscal year.

(Photo: Valeriya Potapova/Thinkstock)

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