New York State economists foresee 1.7% growth in '14

The hospitality/tourism sector, including restaurants, is expected to The hospitality/tourism sector, including restaurants, is expected to see the greatest job growth this year. Government economists also say the overall state economy will grow 1.7 percent. (March 23, 2013) Photo Credit: Heather Walsh

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New York State's economy will grow 1.7 percent this year, a slight improvement over 2013's growth rate of 1.6 percent, according to state government economists.

As part of his 2014-15 state budget presentation on Tuesday, Gov. Andrew M. Cuomo released an economic forecast from the state Division of Budget that calls for slow but steady expansion.

"We're coming back from a very deep recession, but unlike prior recessions, we seem to be coming out of it faster," said state Budget Director Robert Megna.

Still, the U.S. economy is forecast to expand more rapidly. The national gross domestic product, the value of all goods and services produced, will increase 2.7 percent this year, compared with 2013's growth rate of 1.9 percent, according to Moody's Analytics and the state budget office.

Long Island's economy also could outperform the state.

John A. Rizzo, chief economist for the Long Island Association business group, estimated local GDP would increase between 2.5 percent and 3 percent this year after climbing between 2 percent and 2.5 percent in 2013. "I'm expecting more gradual improvement this year," he said.

The economies of both the Island and state have been impacted by waves of hiring in the hospitality and tourism industry and in health care. The new jobs have helped to make up for losses in manufacturing, financial services and government, though they often pay less.

The budget office predicted employment across New York would increase 1.2 percent, or by 107,160 jobs, this year -- basically a repeat of 2013's performance.

Hospitality and tourism will add the most jobs of any sector: 30,260.

The biggest decline, 3,700 jobs, will be in government.

The budget office said wages across the state would increase 4.2 percent this year, after growing 3.9 percent in 2013.

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