Executive Budget Projects Lingering Economic Pain
The economic outlook contained in the Governor’s Executive Budget proposal for State Fiscal Year 2021-22, released this week, anticipates continuing but slow improvement for employment and other economic indicators, as well as tax revenues. Real U.S. gross domestic product is projected to increase by 4.4 percent in calendar year 2021 after an estimated decline of 3.4 percent in 2020, according to the Division of the Budget (DOB). While the State has regained close to half of the 1.9 million jobs lost in March and April of 2020, a return to pre-pandemic employment levels is not expected until 2025.
“The COVID-19 pandemic’s damaging effects on labor markets are still mounting and will be a major obstacle to a balanced economic recovery,” according to the Executive Budget Financial Plan. After a decline of 5.7 percent in 2020, U.S. employment is projected to increase by 2.7 percent in 2021 and reach its pre-pandemic level in early 2023, according to DOB.
For more current highlights on the impact of the COVID-19 pandemic on the State’s finances and economy, visit our web page. Additional topics this week include:
- Paying household bills: A difficult challenge for more New Yorkers
- Unemployment payments declined in recent months
- An update on New York's budget and spending
The State Comptroller's office is committed to keeping New Yorkers regularly updated on the State's economy and finances.
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