CHARLESTON, W.Va. — Most sectors of state’s economy could be in for a quick recovery after the current pandemic is over, according to a report released Wednesday by the WVU Bureau of Business & Economic Research.
The bureau unveiled its 2020 West Virginia Economic Outlook in a virtual event.
Bureau Director Dr. John Deskins said it currently appears the state will benefit from a “v-shaped” recovery.
“We say that because it was a shutdown because of a public health crisis and we keep looking for signs of underlying permanent lasting economic damage and quite frankly we don’t see a whole lot of that quite yet,” Deskins said during a Wednesday appearance on MetroNews “Talkline.”
John Deskins, Director of WVU’s Bureau of Business and Economic Research, joins @HoppyKercheval to discuss the latest economic report, and what it all means. WATCH: https://t.co/wkudfIRZCB pic.twitter.com/FsdxpPAf89
— MetroNews (@WVMetroNews) October 14, 2020
Deskins said the manufacturing sector has almost already fully recovered and other sectors are close behind. He said unfortunately other numbers point toward a longer recovery for the leisure/hospitality and retail industries. Deskins said leisure/hospitality lost more than 50 percent of its jobs during the pandemic shutdown.
“It’s been so hard hit that may be the one sector where lasting damage has been exerted on the economy,” Deskins said.
With retail, Deskins said the brick and mortar sectors will have a tough time bouncing back because online purchasing options, which were already growing, have experienced large increases during the pandemic.
Wednesday’s outlook report also said population in West Virginia is down 65,000 residents since 2012. Deskins said the decrease, which is tied to both to natural population declines, where deaths outnumber births, and out-migration, will continue to be a long-term challenge but it doesn’t have to stay that way.
“If we can find some sparks that encourage in-migration that’s where we have potential,” Deskins said.
He said that could come in the new Virgin Hyperloop announced last week and a new program being promoted and financially backed by West Virginia native Brad Smith to convince people to move to West Virginia, work remotely, and enjoy what the outdoors has to offer.
“I think we have a real potential to get in on that because we have some amenities to build off of. Certainly our outdoor opportunities are up there at the top,” Deskins said. “But remember, this only replies to a certain part of West Virginia right now because you have to have reliable broadband to make this work.”