State economy to keep humming along
Continued growth predicted for the state's economy
Archived article from Feb 11, 2000
By Amy Vames
Although the new millennium has barely begun, all signs point to continued growth of the dynamo that is New Jersey's economy well into the 21st century, according to the annual Review and Economic Outlook released Feb. 7 by the nonpartisan Council of Economic Advisors, which is chaired by Joseph J. Seneca, university vice president for academic affairs.
"New Jersey has continued to make strong gains in a number of areas, including employment, personal income and retail sales," said Seneca, who joined Gov. Christine Todd Whitman in Trenton for the release of the report. "With the state's economic expansion now about to enter its eighth year this spring, these are very, very good economic times, and more of the same lies ahead for our state."
Seneca has served as chair of the Council of Economic Advisors since 1994. From 1976 to 1990, he chaired the Economic Policy Council of New Jersey.
In 1999, employment in the Garden State grew by 1.7 percent, an increase of 65,000 jobs. Unemployment dropped to a 4.5 percent average for last year, the lowest annual rate in a decade. The council predicts that this year, jobs will expand an additional 1.4 percent.
"Indeed, these truly are the best of economic times for our citizens," said Whitman. "With a record-breaking 4 million New Jerseyans now working, it is imperative that we institute measures like New Jersey Jobs for a New Economy. By doing so, we are ensuring economic growth and economic success for the state and our residents beyond the 21st century."
The state's five industry "growth clusters" -- health, high-technology, logistics, financial and entertainment -- continue to expand at impressive rates. The clusters collectively grew by 2.6 percent in 1999, compared with 1.2 percent for all other New Jersey industries. Those growth clusters will be a significant factor in the state's 2000 economy, the council predicts. High technology and higher education are important components of New Jersey's economic success, Seneca said.
New Jersey's gross state product grew by 5.9 percent last year, bringing the state's total GSP to $327 billion. Growth in the state's GSP is expected through 2001, according to the council.
Individual New Jerseyans are benefiting from the booming economy. Personal income in the state rose by 5.8 percent in 1999, and inflation was capped under 2 percent. Those higher incomes hiked retail sales to more than $90 billion last year. As economic expansion continues and inflation remains low, retail activity is expected to rise by 4.8 percent this year and 5 percent in 2001.
In the global market, New Jersey's exports remained level at about $22 billion, reflecting weakness worldwide. The Garden State saw modest gains in its largest export markets: 2 percent in the European Union, and 1.2 percent in Canada and Mexico.
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