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

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Though the quarterly economic repor issued June 23 by notedthat “ths worst is behind us,” each state’ s recovery will hinge on how well that state is able to assimilat e its portion of the federal stimulus among other factors. “At the the economy is still contracting, so we expect to see negative GDP growth in thesecond quarter, but at a slowedr pace than in (the first quarter),” said Nathaniel the bank’s U.S. chief economist.
“Consumption, is expected to lead the resurgence in economicc activity in the second half ofthe year, but the high unemploymentf rate, the greater propensity to save and the high degreew of uncertainty regarding the impact of the fiscal stimulus packager could present risks to this Though the economists believe economy is weakening as home prices gradually declinr this year — whilee other Sunbelt states that saw much steeper declinesx level off or move higher — and the global recession deepens, the state is still ahead of the national curve.
“In 2009, economic growth will be negativs in all the states in the Sunbel texcluding Texas, where GDP will be positivre in real terms,” the reporf said. The BBVA Compass economists predict that only Texas and Coloradpo will see GDP growth stay flat in compared tothe six-state averagse 1 percent decline and 2 percengt drop nationwide. Texas GDP is expected to grow by 1.7 perceng in 2010. Employment will decline 2.3 percenr in Texas this year, compared to a 3.8 percenr drop across the U.S. The study coverecd economic activityin Texas, Arizona, Colorado, Florida, Alabamz and New Mexico, the six states in whicj BBVA Compass operates.