Wed. March 4, 2009
Report Highlights Some Bright Spots Despite Economic and Financial Turmoil
WASHINGTON, DC – Although Downtown and DC’s economies are less volatile than those of regional, national and global financial systems, they are not immune to current financial and economic woes. Overall, both economies experienced mixed performance last year, but their fundamentals are sound, if not strong, according to a new report by the Downtown DC Business Improvement District (BID).
The “2008 Economic Brief” compiles graphics and information from the Downtown BID’s “2007 State of Downtown Report” and new 2008 data. It also highlights major trends in the Downtown BID area for the year, including record office market rents that hit $55.51 per square feet, a growth in destination restaurants to 123, record hotel revenues and an increase in weekday and weekend Metrorail ridership of 4.9% and 9.5%, respectively.
“Despite the current financial and economic downturn, there’s still a bit of good news out there,” says Richard H. Bradley, the Downtown BID’s executive director. “Fortunately for Downtown and DC, our economies are not on life support, although unemployment has climbed to 8.8% and could rise above 10%. It’s true that economic trends were down for the last three months of the year, but several economic sectors also set performance records for the year. In addition, both Downtown and the city stand to benefit from the economic financial crisis and stimulus plan, which will result in more local and regional jobs.”
According to the report, several factors bode well for Washington: an Association of Foreign Investors (AFIRE) survey shows that domestic and foreign investors rank the city and the region as the best market in the nation and the world; organizations outside the region continue to move to the city and the region (and even those within the region are relocating to Washington); DC’s population continues to grow; and despite significant revenue pressures and increased “safety net” expenses because of the economic downturn, the DC government is strong financially.
In fact, during the last four national recessions—in the first half of 1980, mid-1981 through 1982, mid-1990 through early 1991 and most of 2001—the DC area has had positive economic growth of 2.3%, 3.1%, 0.2% and 2.5%, respectively.
For a copy of the Economic Brief, visit www.downtowndc.org/brief. For questions or comments, contact Gerry Widdicombe, the Downtown BID’s director of Economic Development, at gerry@downtowndc.org or 202.661.7597. Or you may contact Caitlin Davis, research assistant, at Caitlin@downtowndc.org or 202.661.7591.
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