Report: COVID-19 Impact on Michigan’s Economy Greater Than Other States
August 24, 2020The report showed in Q2 that Michigan’s GDP fell at an annualized rate of 41% in comparison to the U.S.’s GDP decrease of 32.9% over the same period.
Further, a University of Michigan report revealed that Michigan may not reach pre-pandemic employment levels until 2024. It also noted the “deep and long-lasting” impact on the city of Detroit in particular. The number of jobs in the city likely will not rebound until 2023, but the city’s recovery is expected to be quicker than the state’s as a whole in part due to the significant real-estate projects underway.
Looking ahead, the state’s economic recovery is projected to continue through Q3. It will be a slower recovery considering the many COVID-19-related uncertainties that remain including workforce changes, school closures, availability of stimulus funding, and policy changes associated with the upcoming presidential election. The process will take more than three years to reach the peak GDP from Q4 of 2019. This forecast is informed significantly by a continued high unemployment rate.