U.S. and Kansas Economic Forecasts for 1990: Midyear Update

Abstract

National economic growth will be slower in 1990 than it has been for the past 5 years; real gross national product will grow only 2.3 percent. Although much of the slow growth this year can be attributed to a weak 1.1 percent rate of growth during the first quarter, the economy will remain somewhat sluggish during the rest of the year, growing at only a 2.6 percent annual rate over that period.

The Kansas Economy will also exhibit slower growth in 1990. Total nonfarm wage and salary employment will increase only 1.8 percent this year, compared to 3.1 percent in 1989. Total Kansas employment is forecasted to increase 1.4 percent. The unemployment rate will increase from 4.0 percent in 1989 to 4.1 percent in 1990.

Three sectors will contribute most of the Kansas employment growth in 1990. Half of the growth in employment will be accounted for by a 3.8 percent growth in employment in services. Another fourth of the increase in Kansas employment will be accounted for by a 2.0 percent growth in employment in wholesale and retail trade. Finally, construction employment will partly rebound from two declining years with an 8.7 percent increase.