The state economy appears poised for future growth, but serious issues remain. The “unwinding” of the economic excesses of the 1990s is delaying a genuine economic turnaround, but many other issues are weighing heavily on the economy. These include the risk of terrorism, weak global economic performance, a weak dollar (this issues cuts two ways), and the threat of deflation. When a recovery arrives, job growth will probably lag, and be modest when it appears. We should not expect to return to the heady days of the late 1990s anytime soon.
Clayton-Matthews, Alan, "Economic Currents: The State of the State Economy" (2003). Public Policy and Public Affairs Faculty Publication Series. 37.
University of Massachusetts
Published in MassBenchmarks, Vol. 6, No. 2, pp. 4-11: http://www.massbenchmarks.org/publications/issues/vol6i2/3.pdf.