Promoting Regional Advantages, pushing for increased productivity, and correcting state fiscal issues are critical to future growth, according to Federal Reserve of Chicago Economist Rick Mattoon. He was featured speaker at an Oak Brook breakfast event for brokers and developers sponsored by North Central Illinois Economic Development Corporation on May 15.
"The National economy has strong momentum," Mattoon said. "World economic expansion, the new tax stimulus, and good consumer sentiment are positive signs for a growing national economy." Mattoon warned that underlying factors suggest reduced future growth. Those factors include bad demographic with an aging workforce population, and a major productivity rut. "Productivity is the key to future growth," said Mattoon.
Illinois is last in the the Midwest in recovering jobs from the recession, and securing the new jobs and income necessary for growth. Chicago is leading the region in job growth, but most of Illinois is suffering from a loss of population, lack of in-migration that helped Illinois for 30 years, and the loss of gross income. In 2015, Illinois lost $4.75 Billion of adjusted gross income to Other states.
"Illinois faces two big issues - uncertainty and paying for services already consumed," said Mattoon. Mattoon suggested that Illinois can best secure long-term economic growth by 1) focusing on Productivity growth, 2) getting fiscal house in order, 3) leverage strength of Chicago as the Only Global City in the Midwest to attract talent and investment, 4) grow tech and advanced manufacturing industry sectors, and 5) coordinate policies across the region as an integrated economy.
Mattoon suggested that North Central Illinois, and other nearby regions, coordinate and promote with the hub of Chicago, and take advantage of the spillover growth in logistics and manufacturing.
Jim Riley, chairman of NCI, said "this event is part of our continuing effort to meet with brokers and developers, and promote the region for new investment."