San Antonio’s financial system will outgrow a lot of the nation’s different massive cities this yr, in accordance with a
new report
— regardless of a slowdown from 2022.
The report from the
Kenan Institute of Non-public Enterprise
ranks the Alamo Metropolis fifth amongst U.S. cities by anticipated progress of gross home product, prognosticating that its financial system will develop by 1.4 p.c via 2023, a tie with Salt Lake Metropolis.
Austin was ranked second amongst U.S. cities with an anticipated progress price of two.8 p.c.
Final yr, the San Antonio financial system grew by 2.6 p.c, the report says, citing financial knowledge launched in December.
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San Antonio unemployment declined in late 2022, however Dallas Fed says jobs slowdown probably coming
Like Austin, the remainder of the cities predicted to outgrow San Antonio this yr has robust tech sectors. The San Francisco Bay space is No. 1 with an anticipated price of three p.c; Seattle was third at 2 p.c; the Raleigh and Durham space of North Carolina was fourth with 1.6 p.c.
The report predicts that the U.S. financial system will enter recession within the second half of 2023 or early 2024, citing uncertainty after “a unstable yr that included each robust job progress and protracted inflation.”
“The excellent news is that we anticipate the anticipated recession to be comparatively gentle,” with greater than half of U.S. cities nonetheless having fun with progress, the report says.
Cities with economies that depend on tourism — a bunch that features San Antonio — are “anticipated to be hit exhausting as customers in the reduction of on pointless spending throughout the downturn,” the report says.
“After two years of lockdowns, nevertheless, pent-up demand — which is difficult to mannequin — could hold the tourism trade afloat,” it says.
The way it compares
The institute, which operates as a part of the UNC Kenan-Flagler Enterprise College on the College of North Carolina, predicts the Dallas financial system will develop at a barely slower price than San Antonio’s: 1.3 p.c. Houston’s financial system is anticipated to develop at 0.4 p.c.
On ExpressNews.com:
San Antonio is No. 7 amongst nation’s largest cities for productiveness progress, new report says
The report predicts damaging progress for a lot of U.S. cities, together with Chicago and Las Vegas, with every anticipated to undergo GDP declines of 0.6 p.c.
It anticipates San Antonio’s GDP to succeed in $168 billion this yr. In 2021, the San Antonio-New Braunfels metro space
had a GDP
of $144.3 billion, up from $115.3 billion in 2016 and $88.4 million in 2011, in accordance with the Federal Reserve Financial institution of St. Louis.
“Cities with robust financial fundamentals, corresponding to rising industries and constructive migration influx, can carry out nicely even throughout a nationwide financial slowdown,” the report says.
For years, San Antonio has been one of many fastest-growing cities by inhabitants within the U.S. Between 2020 and 2021, extra individuals moved right here than anyplace else within the nation,
census knowledge confirmed
final yr. Between July 2018 and the identical month in 2019, the town’s progress price was outpaced
solely by Phoenix.
On ExpressNews.com:
Extra persons are shifting to San Antonio than anyplace else within the nation — together with Austin
In December,
one other report
from the Kenan Institute mentioned San Antonio’s financial system made one of many greatest climbs in productiveness amongst massive U.S. cities over the previous 15 years.
The economies of Austin, Dallas and Houston grew at charges of 4.9 p.c, 3.3 p.c and 1.9 p.c, respectively, in accordance with this month’s report, which the institute launched as a part of its
American Development Undertaking
analyzing the expansion of regional economies within the U.S.
The one financial system listed as rising sooner than Austin’s final yr was that of the San Francisco Bay space, with a GDP progress price of 5.1 p.c.
