The Institute for Economic and Environmental Studies at Cal State Fullerton has released a new report detailing Orange County’s international trade picture. The report forecasts gains for the segment since the recent recession and projects growth to continue in 2013.
CSUF Mihaylo College faculty, Dr. Mira Farka and Dr. Aidrian Fleissig, developed the report, which examined Orange County’s exports within the Los Angeles-Long Beach-Santa Ana Metropolitan Statistical Area over the past two years, and projects export for the area into 2014.
According to OC Metro’s online story on Dr. Farka and Dr. Fleissig’s International Trade Economic Forecast, the O.C. exports improved dramatically in 2010 and 2011 with exports rocketing up by 22 percent and 20.2 percent, despite falling by 14.9 percent in 2009 as an effect of the national recession.
Now, the merchandise exports account for a healthy portion of Orange County’s economy, amounting 13 percent of the county’s Gross Metropolitan Product. The sector is predicted to settle in at an average of 6.5 percent over the next three years and expected to amount to $30 billion by the end of 2014.
Orange County’s top exports remain high-tech products, with the largest amount of exports coming from the Computer & Electronics category ($7.1 billion in 2011), followed by Transportation Equipment ($4.2 billion in 2011).
Since the 2009 recession, exports have been booming over the past two years and will continue to grow over the period of the forecast, however, at a more modest pace. This is in response to the global economic slowdown seen in 2012, which will likely continue in 2013.
Regardless of the projection for slowed growth over the next few years, Orange County exports are remaining a healthy part of the county’s economic growth. In 2012, exports are expected to increase 4 percent for the county, amounting to a total of $25.6 billion. In the next two years, exports are projected to increase by 5.8 percent in 2013 ($27.0 billion) and 9.7 percent in 2014 ($29.7 billion).
For more forecast reports from the Institute for Economic and Environmental Studies visit, http://business.fullerton.edu/centers/iees/