Pennsylvania's World-class economy

Despite what critics say about Pennsylvania’s business climate, we have the 6^th highest GDP (gross domestic product) in the latest ranking of all 50 states.  In fact, Pennsylvania now ranks as the world’s 24^th largest economy.  We produce more goods and services than Saudi Arabia, Switzerland, Ireland, Sweden, Egypt and Greece.  Pennsylvania’s GDP is higher than Hong Kong and Portugal combined.

The Lehigh Valley helps to fuel that powerful economic engine.  Our region is gaining a national reputation in the high technology cluster, with a good research-and-development base for electronics and nanotechnology.

Pennsylvania’s economy is also “expanding,” showing steady job growth for the third consecutive year.  Just a few months ago, our Commonwealth’s economy reached a new total employment record of 5,771,600 jobs.  The state unemployment rate (4.3%) was also once again below the national average.

All of these “economic indicators” prove that the Governor’s Economic Stimulus Plan is producing some very significant, positive results – and created an estimated 218,000 new jobs during the past four years.

Pennsylvania boasts an aggressive (and impressive) array of business financing incentive programs that rank among the most comprehensive in the country.  Continued investments in these economic development programs continue to demonstrate results.  The Commonwealth leads the nation in attracting new manufacturing facilities to our state.  Last year, these projects accounted for 10 percent of all manufacturing projects locating in North America.

However, at last month’s mid-year Budget Briefing the Governor’s Budget Secretary cautioned lawmakers to beware of an “economic slowdown” in 2007.  Forecasts for a slowing housing market and lower-than-expected national GDP growth are contributing to this so-called “soft landing” for Pennsylvania’s economy.  There is a silver lining, to be sure.  By achieving a “soft landing,” our economy will avoid a recession and any potential for long-term damage inflicted by inflation will be avoided.  This sets the stage for stronger growth in the second half of 2007 and much stronger growth for 2008.

This much is certain in uncertain economic times: the investments we make in the coming State Budget to create new jobs and expand opportunities for business and commerce will become even more important during the coming year.

I’m confident Pennsylvania will be well positioned to meet these challenges to our global competitiveness for many years to come.  After all, I wouldn’t expect anything less coming from a state that ranks as the world’s 24^th largest economy.

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