April 9, 2024
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Thornberg: Slower growing economy doesn’t mean recession near


The eight-year trend of economic growth in California and the Central Coast does not necessarily mean a recession is coming, according to economists who spoke at the Central Coast Economic Forecast on Nov. 3 in San Luis Obispo.

A common belief is that the economy has a life cycle that inevitably switches back and forth from growth to recession but the reality is that growth trends only end as a result of a large negative shock.

“Predicting recessions simply comes down to predicting what that negative shock may be,” Chris Thornberg, a founding principal at Beacon Economics, said at the forecast.

As the various speakers presented data from the region, state and country, business leaders from around the Tri-Counties took in as much information as they could. One of the main takeaways is the lack of housing and workers in the area.

“The current administration seems to be against immigration but we need workers now more than ever,” Thornberg said.

• Contact Robert Shutt at rshutt@pacbiztimes.com.