Arizona economic recovery proceeds, but with choppy waters. Here’s why


The Arizona economy continues its recovery from the pandemic, but progress has been uneven. The travel and tourism sector is improving, but still has a long way to go. Transportation and warehousing continues to add jobs at a rapid pace, thanks to accelerated online shopping and demand for delivery services. Fiscal stimulus has driven strong income growth, which boosted consumer spending, but that will end later this year. House prices continue to surge, driving down affordability. Arizona’s population rose at a faster pace than most states during the past decade, but growth was slow relative to the past.

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The outlook for the state remains positive, but the pandemic will still influence the pace of recovery. The baseline forecast assumes that vaccine distribution continues to go well and that no vaccine-resistant variants emerge. The baseline projections call for state…

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