Accelerate Long Beach Carried Hope for Economic Gains As Recovery from Pandemic Persists

Jon LeSage

Are things getting back to normal with the Long Beach Marathon returning for the second year? It looked good for local businesses such as restaurant and bar owners serving the gathering crowd, who were pleased to see a Cal State Long Beach graduate win the 38th annual race on Oct. 9.

But along with public health officials expecting the next wave of COVID coming this winter in the form of emerging Omicron subvariants, economic analysts warn about an expected downturn hitting the economy in the months ahead. There is also hope for greater stability in the long run as the port sees more growth, and Long Beach benefits from other industry sectors choosing to stay here.

The Accelerate Long Beach economic forum, with its “Navigating the Future” theme, had its share of good news to offer at the Long Beach Convention Center on Sept. 29. Presented by Bank of America and the Long Beach Economic Partnership (LBEP), speakers talked about the city recovering from the pandemic but also warned of an expected downturn.

That expectation was well represented by the International Monetary Fund bringing down its global growth forecast to 2.7% next year, 0.2% points lower than its July forecast. Millons of people around the world will feel the impact of a recession, the IMF said in its World Economic Report Outlook report on Oct. 11.

Long Beach is doing very well right now, recovering from the pandemic downturn, speakers said. The challenges are on the horizon, Robert Kleinhenz, director of CSULB’s Office of Economic Research said, with the prospect of a recession hitting the nation and a local housing crisis with many feeling the squeeze from its rising prices.

Panelists are looking forward to a longer term period of economic recovery and vitality, even if a downturn comes next.

LBEP and Port Make Deal

The LBEP carried that enthusiasm into inking an agreement with the Port of Long Beach during the day of the Accelerate Long Beach conference. A shared economic plan is now underway to revive the One World Trade Center building with more office space being filled soon. That will come from the anticipated decision of the Long Beach Board of Harbor Commissioners approving a plan that’s expected to come together during the first quarter of 2023.

Details haven’t yet been released by the two organizations, but more coordination is expected to be worked out by them to drive greater economic opportunities for the city.

For the LBEP, that will come through its World Trade Center relaunch that was part of its Blueprint of Economic Development. The LBEP will guide the World Trade Center relaunch under that blueprint, according to a Port of Long Beach representative.

Looking at Unemployment and the Next Two Years

The labor market has been able to bounce back faster than what was seen during the Great Recession nearly a decade-and-a-half ago. The early months of COVID saw a dramatic job drop, when unemployment quadrupled. It’s close to bouncing back to its pre-2020 level, Kleinhenz said during Accelerate Long Beach.

Stimulus programs rolled out by Congress helped the economy get back on its feet, he said. Getting Coronavirus Tax Relief from the IRS in the form of electronic funds transfers and checks in the mail helped consumers make purchases for the fundamental items needed around their homes.

Overall, consumer spending, business investments and international trade have remained strong over the past two years – another sign recovery is faster and farther along than it had been following the Great Recession.

The economic challenges over the next two years is expected to look more like a flat line than a downward curve, according to the panelists. Businesses providing services to consumers and businesses have been hit the hardest over the past two-plus years. Americans began spending more on goods to be shipped to their homes and offices.

Traffic congestion on the freeways and city streets may have been way down two years ago, but delivery trucks from Amazon, UPS, and FedEx, have been staying busy. That’s been followed during 2022 with local residents and workers going back to old habits – going to a salon, going out to eat, and spending money on entertainment including live performances and movies.

Economists and other panelists during Accelerate Long Beach don’t expect another serious recession in the near future, but a slower and more gradual growth phase.
 

Jon LeSage is a resident of Long Beach and a veteran business media reporter and editor. You can reach him at jtlesage1@yahoo.com.

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