State coffers improved, means probability of repeat recession decreasing
January 19, 2012 by Mark
Good news out of Minneapolis. If revenue continues to pour in from residents, the State of Minnesota just might be on its way to economic recovery a little quicker than experts predicted.
Finance officials from the state capital have announced that revenues in the general fund amounted to $2.9 billion in the last two months of 2011. If that figure appears healthy, it is. That’s approximately $62 million over and above the predicted figures and six per cent better than the same time period just one year previous.
The millions in excess dollars, $25 million in fact, comes from healthy and unexpected income tax payments from individuals which, officials believe, is a reflection of low unemployment numbers. Add another $8 million for state income from corporate tax. Minneapolis printing companies are among the thousands of taxpayers in the corporate sector that have contributed to the healthy increase.
Economists across the U.S. still claim that another recession caused by the European debt crisis is still possible.
“Forecasters continue to expect subpar growth during the remainder of 2012, leaving the U.S. economy with little cushion against an unexpected shock,”
budget officials said in a statement from Minneapolis.
“While most believe that the current U.S. recovery will be sufficiently robust to withstand a mild recession in Europe, a more severe European recession could end the current U.S. economic expansion,” the statement continued.
However, the probability becomes less likely with every month that goes by as consumer confidence and the labour market improves.