The Washington Region’s Economy in 2017 & Outlook for 2018 & Beyond
The Washington region’s economy outperformed its beginning-of-the-year forecast in 2017 growing at an estimated 2.1 percent and improving significantly on its 1.1 percent gain in 2016. While still not outperforming the national economy (GDP), the region’s economy has recovered sufficiently to closely mirror the current and projected near-term performance of the U.S. economy.
In spite of the uncertainty introduced into the region’s economic equation by the new Trump Administration with its threats of “draining the swamp” and “shutting the government down might be good for the economy,” and proposing to shift significant budget resources from domestic agencies (and closing more than 30 smaller federal agencies) to the departments of Defense and Homeland Security, the actual negative impacts of the Trump Administration have been difficult to measure beyond the modest loss of federal jobs during the second half of 2017. The new Administration’s positive impacts (indirect) have included accelerated job growth in the region’s business and leisure travel and advocacy clusters and a stronger national economy that has bolstered the regional economy with rising consumer confidence, increased personal income, growth of corporate income and increased foreign trade.