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Recession In Kentucky, Experts Have End In Sight

By: Dave Spencer Email
By: Dave Spencer Email

2009 might not be the best year for the economy but economic experts say we could see things turn around in Kentucky by the end of the year.

The collapse of the housing market brought everything down with it, according to University of Kentucky Economic Professor Ken Troske.

He says we simply built more houses than we needed as a nation. In Kentucky he says things are different, "It's taking longer to sell your house but your getting what you would have gotten a year ago."

Housing might be Dr. Troske's reason for the economic collapse, but its effects are far reaching and those effects are being felt in the bluegrass state.

Justine Detzel, the State's Chief Market Analyst, says the unemployment rate for the state rose nearly a full percentage point from 2007 to 2008.

"The rise is very significant, not something you'd observe year to year," She says. She also adds you can expect that number to rise in the near future.

Both experts say, even if the country and state begin to show signs of an economic recovery, the unemployment rate could lag behind, meaning more days of layoffs and uncertainty before we turn the corner.

Now for some good news. Dr. Troske says lower fuel prices will lead to lower food prices and slowly but surely he anticipates the economy to work itself out of this recession.

He also says we will have to be patient; it could be the end of 2009 until the recovery process begins.


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