Don’t expect recovery from the deep recession to come quickly. University of South Carolina economist Dr. Paulo Guimaraes says recovery is going to be a very slow process.
He says the recession may be considered an opportunity, not a burden. “Make the best of it,” Guimaraes says. “Unless you’re in a dire situation, and if you are stable in your job, take advantage of it now with your purchasing power because six months from now it may not be there.” But Dr. Guimaraes says that does not mean filling up a high-interest credit card with debt that you have to pay back.
Guimaraes co-authored the Moore School of Business’ annual economic forecast this year. The forecast calls for a slight .2 percent increase in South Carolina’s job base next year, and a 3.3 percent climb in the personal income of state residents.
Guimaraes says this is definitely a buyers’ market, from small items all the way up to houses. He says buy now if you can, because prices will go up. He says the interest rate on loans is really low now so it’s a good time to go home shopping. And he says most retailers, of all types, are desperate to sell.
Guimaraes says there have been many recessions before. He encourages the public not to give up. “Following a recession you have an expansion,” he says. “There’s one thing for sure, that it goes in cycles. We have been in this recession for more than a year and we know the end will come soon, unless something out of our control happens. Hang in there and believe that the future will bring prosperity.”
Dr. Guimaraes says the Boeing announcement was great news for the South Carolina economy, but he says there are other reasons for those in the Palmetto State to keep their confidence.
(Guimaraes on South Carolina economy, Mp3 :49)