Economist: recession could hurt tourism, mining
The Associated Press
ANCHORAGE – An Anchorage economist says the downturn in the global economy is likely to touch Alaska in two sectors — mining and tourism.
Jonathan King, a senior economist at Northern Economics, says Alaska’s ability to avoid layoffs or shutdowns will depend on how long a recession lasts.
King spoke Thursday to business leaders at the Resource Development Council annual meeting.
King says the outlook for 2009 is positive in other ways.
He says Alaska has one of the lowest foreclosure rates in the nation and housing prices have not declined substantially.
He also says state government and the bigger companies operating in Alaska have plenty of cash thanks to several years of high prices for North Slope oil and metals from Alaska mines.
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November 22nd, 2008 at 4:00 am
After 22 years of listening to Alaska economists, I’ve concluded they, like real estate agents, are all cockeyed optimists. Blindly following these Pollyannas could result in Alaskans riding their businesses and investments right into the ground. The facts are: oil prices and Alaska oil royalty revenues have crashed; the Lower 48 is headed into a severe recession, and educated guesses are that it won’t return to normal until 2015; Alaska oil production is falling steadily with no end in sight; the Alaska Permanent Fund has lost $13 billion in 11 months and has only $27 billion left to go; and the loss of Senator Stevens and a Democratic President will result in huge losses in federal funding for Alaska.
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