LANSING, MI (WLNS) – The next president will need to keep an eye on the economy.
Local economists say while the stock market dropped another 250 points Wednesday, they predict economic growth for the year but six news spoke to two economists today who say global complications could pose a challenge for 2016.
According to Lansing community college economist Jim Luke, after the recession hit six years ago the economy has been steadily growing.
Luke predicts this year will continue that trend.
“Incremental slow and steady growth this is like the tortoise not the hare” Professor Luke said.
Officials predict a 2 percent increase in the economy.
“Interests rates will remain low so that’s good things, I think that autos particularly for Michigan will be a boom year but that’s because of low interests rates and low gas prices.” Douglas Roberts, MSU Director for Institute for Public Policy and Social Research said.
But while forecasters predict a rise, Dr. Roberts says the biggest concern he has for 2016 is on an international level.
“There’s a situation where Japan’s economy is not doing very well, we have a situation where, Iran and Saudi Arabia basically broke off diplomatic ties, these all could affect the economy in very big ways but it’s difficult to predict.” Roberts said.
According to Roberts, the US has to be a world leader, and since we have strong international ties, a crash anyway in the world could impact the US strongly.
Professor Luke recommends, consumers spend wisely and approach any real estate deals cautiously.
“The idea that they were going to rapidly go buy something and flip it and fix it for a 20 percent increase in a few months, yea we’re not going to see that.” Jim Luke, economic professor at Lansing Community College said.
According to Luke 2016 is a good year to save, and set a sound financial base.