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Hampton Roads State of the Region 'mostly good,' but threat of government shutdown, possible recession still loom, according to ODU economists

ODU's Bob McNab says with prolonged shutdown, "we would see diminishing economic prospects in 2024."

NORFOLK, Va. — The state of the region is "mostly good," according to Old Dominion University economists.

They told the Hampton Roads Chamber on Tuesday that the signs are encouraging, following three consecutive years of economic growth for the region.

But you can't talk about the state of the region without talking about Hampton Roads' relationship to the military — with Virginia being the number one state in the country for Department of Defense spending

RELATED: Virginia is No. 1 state in the nation for defense spending, according to new DOD report

The signs of prosperity are visible up and down the Hampton Roads waterfront — with the DOD spending possibly $27.1 billion this year in this region alone.

"And if Congress can get their act together and defense bills and other bills get appropriated, we should grow in 2024," said ODU Economics Professor and department Chair Bob McNab.

He acknowledged, during his State of the Region presentation to the Hampton Roads Chamber, that's a pretty big "if."

The nation came perilously close to a government shutdown last weekend.

And, when the new continuing resolution expires November 17, unless a deal is struck, there could still be a shutdown.

McNab is concerned. He noted: "A prolonged shutdown would likely plunge us into a recession."

RELATED: Even with government shutdown averted, there's still much concern for private ship repair industry

Which is absolutely not what business leaders want to take place — especially concerning the local private ship repair and shipbuilding industries — which employ more than 85,000 workers.

"If the federal government shuts down and all funding for those projects stop, the employees that work at those places won't get paid. And that is extremely problematic to the business community, extremely problematic to our economy here in the region," said Bryan Stephen, President and CEO of the Hampton Roads Chamber.

According to the report, the region's population is now a little over 1.8 million people, which represents just a 0.2% growth since 2020.

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