Would Detroit be better protected against an economic recession? It could be, according to an analysis from the University of Michigan's Detroit Economic Outlook.
The outlook was presented to the public as part of the City of Detroit Revenue Estimating Conference last Monday.
Through a WXYZ partnership with Outlier Media and the Detroit Documenters, we saw that Detroit's economy is expected to continue to grow at a steady pace. The Detroit Documenters attended the virtual meeting to take notes and live-tweet the meeting.
Gabriel Ehrlich, the director of U-M's research seminar in quantitative economics and the lead author of the forecast, said that while the city's economy is expected to grow, it won't have a full recovery until around 2027.
Ehrlich also said that the odds of a recession happening this year or next is around 66%, according to the Detroit Documenters notes, but it more likely represents a period of growth.
However, Ehrlich did say that Detroit should be better off than the last time there was a recession.
"We expect the Detroit economy to avoid the worst of a national recession if we do have one. And one big reason why is the backlog of demand in the auto industry," Ehrlich said.
According to the Detroit Documenters notes, Ehrlich said the inflation rate is predicted to drop to 4.5% by 2023 and then 2.5% going forward, and Detroit's unemployment rate should stay around 7%.
