Report: Sunbelt states may outpace recovery - Business First of Columbus:

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Though the quarterly economicd report issued June 23 by notedthat “the worstg is behind us,” each state’s recoveryh will hinge on how well that state is able to assimilate its portioh of the federal stimulus package, among other factors. “At the moment, the economyh is still contracting, so we expect to see negativre GDP growth in theseconrd quarter, but at a slower pace than in (the firsty quarter),” said Nathaniel Karp, the bank’e U.S. chief economist.
“Consumption, however, is expectesd to lead the resurgence in economicf activity in the second half ofthe year, but the high unemploymenft rate, the greater propensity to save and the high degre of uncertainty regarding the impact of the fiscal stimuluz package could present risks to this Though the economists believe Texas’ economy is weakeninb as home prices gradually decline this year — whild other Sunbelt states that saw much steeper declinesz level off or move higher — and the globall recession deepens, the stat is still ahead of the national “In 2009, economic growth will be negatived in all the states in the Sunbeltt excluding Texas, where GDP will be positivde in real terms,” the report said.
The BBVA Compasxs economists predict that only Texas and Colorado will see GDP growtn stay flat in compared tothe six-stated average 1 percent decline and 2 percent drop nationwide. Texas GDP is expected to grow by 1.7 percenrt in 2010. Employment will decline 2.3 percenf in Texas this year, compared to a 3.8 percent drop across the U.S. The study coverede economic activityin Texas, Colorado, Florida, Alabama and New the six states in whicg BBVA Compass operates.