Models predicting coronavirus economic impact to West Michigan economy
Numbers from China, South Korea, Japan and Washington state are being used to model the economic change West Michigan will likely experience from the COVID-19 outbreak.
Industries at highest risk and that will be hit the hardest are arts & entertainment, recreation, accommodation, food services and transportation.
“We’re expecting very deep hits on those sectors and that will last for more than a few weeks.”
Paul Isely is associate dean in the Seidman College of Business at Grand Valley State University. He says those sectors make up about 5-percent of the local economy. Still, a painful situation for workers in those fields.
“We’re looking for $1.2 to $2 billion taken out of the West Michigan economy. Overall in the West Michigan economy, we’re a little over $61 billion for a year. So, this is going to happen for a very short period of time. It’s going to be very painful in that month to two-month range. But most of the modelers are right now showing a pretty strong return as we hit the second half of the year.”
However, before we get there, Isely is certain the economy will experience a shallow recession.
I’m Patrick Center