RIVERSIDE, CA — The Inland Empire economy is gearing up well heading into next year, reaping benefits from ongoing expansion in transportation, healthcare, hospitality and other sectors, according to a report released Thursday.
The upbeat findings were part of the annual “Southern California Economic Update” published by the Southern California Association of Governments.
“The outlook for the near-term future is positive for the Inland Empire,” Chief Economist for the Inland Empire Economic Partnership Manfred Keil said. “First, steady growth in the U.S. economy is expected over the next six to 18 months, driving increases in spending. Second, migration to the region will increase as households move from the coastal areas and elsewhere in search of more favorable housing costs, which will trigger continued growth in population-serving industries such as healthcare, retail trade and leisure and hospitality services.”
Keil joined SCAG Executive Director Kome Ajise and others for an Economic Roundtable in Riverside Thursday to spotlight key points from the SCAG report.
“The risk of recession is sharply lower than it was a year ago,” Ajise said. “Consumers continue to drive the state and regional economies with their spending, and business investment in equipment and software is sharply higher. This should extend into 2025 as interest rates soften.”
Analysts said significant developments in logistics, healthcare and energy projects, along with steadily increasing tourism, will result in economic positives over the coming year. Labor growth and capital investment are assured.
“Housing construction and sales should rebound as the cycle of interest rates turns lower,” according to the report.
The Inland Empire ranks as the 12th largest metropolitan statistical area nationwide, within 200,000 residents of the Boston-Cambridge MSA, which is ranked No. 11.
“Challenges remain,” the report stated. “Comparing wages to gross domestic product, the Inland Empire ranks 300th out of 390 MSAs. Also, proposed hefty tariffs on imported goods, in particular from China, could reduce imports and negatively impact the region’s logistics industry.”
The full report is available at scag.ca.gov/news/2024-southern- california-economic-update-now-available-online.
