Economists see continued improvement for Arizona in 2017

December 09, 2016

Economic outlooks for 2017 predict Arizona is on the right path for growth, even though anticipated housing and population gains will fall short of the state’s pre-recession gains.

The state’s overall economic vitality plays an important role in our vision for a sustainable energy future. Planning for economic growth is critical to the current Rate Review and 2017 Integrated Resource Plan. Both shape our ability to make strategic investments that create more efficient operations and enable customer choice for the future.

Economists at the recent ASU/JPMorgan Forecast Luncheon in Phoenix said the state’s economy will benefit from new jobs and continued population growth, according to The Arizona Republic. Arizona should continue to add new jobs at a 3-percent clip in 2017, said Lee McPheters, director of the JPMorgan Chase Economic Outlook Center at the W.P. Carey School of Business. That equals 81,000 jobs, following an increase of about 76,000 jobs expected this year.

Population growth is predicted to stay at about 1.6 percent, which is half of the state’s long-term average but double today’s national growth rate, McPheters said.

On the housing front, a report from realtor.com, the official website of the National Association of REALTORS®, named the Phoenix metro area as the country’s top housing market in 2017. Its experts said the combination of price growth (5.94 percent) and sales growth (7.26 percent) earned the top ranking for the Valley of the Sun.

Tucson is No. 9 in the realtor.com forecast, another encouraging sign for Arizona’s economy.

Link: Preliminary 2017 Integrated Resource Plan
Link: 2016 Rate Review Executive Summary