Business school panelists begin 2011 economic forecast tour in Indianapolis

The Kelley School of Business presented its national, state and local economic forecasts for 2011 Thursday in Indianapolis.

Though the panel also predicted slow economic growth for both the state of Indiana and the Indianapolis area, they noted job growth might be stronger in Indiana than in other states.

Indiana ranks fifth nationally in terms of the rate of job growth in 2010, and has regained about 18 percent of the jobs that were lost in the recession.

The 2011 Business Outlook Panel, comprised of Kelley faculty, began presenting at 7:30 a.m. at the Colombia Club downtown and will tour the state, giving presentations in nine other cities through Nov. 16.

In the forecast today, economists said they expect the current historically weak recovery to continue into 2011, with the economy expanding at about a 3 percent rate between the fourth quarters of this year and next year.

This percentage is indicative of a much slower recovery compared with past recessions.

Panel member Jerry Conover, director of the Indiana Business Research Center, said the growth of Indiana’s real gross domestic product has fallen below the national level for several years, but this year Indiana growth seems to be rising above.

From a national stand point, the panel members cited joblessness as a factor that will continue to be a serious challenge in 2011, along with the federal budget deficit, which will likely remain very high.

They predicted the world economy to grow by 4.2 percent in 2011, down from this year’s pace due to tensions and uneven recovery paces between advanced economies and emerging economies.

A finished report on the outlook for 2011 will be published in the winter issue of the Indiana Business Review, available in December at www.ibrc.indiana.edu/ibr.

This year’s tour is sponsored by the Kelley School of Business, the IU Alumni Association, IU campuses and other community organizations.

— Molly Johnson