NORFOLK, Va. — 2022 is coming to a close and Old Dominion University is predicting what’s next for Hampton Roads.
The school’s latest "State of the Commonwealth" report warns about the possibility of a recession in the new year.
“So higher unemployment, lower prices, lower corporate profits, lower wages for some people,” said ODU Economics Professor Bob McNab.
The good news, according to McNab, is he expects that any economic downturn won’t last long.
"It is not a long grinding halt of employment for many people,” McNab said. “But sort of a disturbance. Some people will be employed, some people’s lives will continue as normal.”
If the recession forms, the report said Virginia will have more job losses than the nation due to its higher dependence on federal spending.
“In Hampton Roads, four out of every 10 dollars in the economy is touched by the federal government,” McNab said.
On a positive note, McNab predicts some relief in the housing market.
"Money is a lot more expensive, so we are going to see demands soften, and as demands soften, prices are going to start coming down,” McNab predicted.
While McNab expects a light economic bump next year, he said supply chain issues in China could shake up this economic forecast.
“Millions of Chinese are being infected with COVID, hospitals are overwhelmed,” McNab said. “If this continues, this is a supply chain shock we just weren’t anticipating. Because if everybody is sick in China over the next couple of months, then the idea they are reporting to factories and working and exporting those goods to the US is going to be somewhat laughable.”
McNab said people should gradually prepare for a recession but not panic. He recommends tracking finances and getting out of as much debt as possible. He said if people look to invest they should do so for the long term, set it and forget it.
The full State of the Commonwealth report is here or read it below: