The Midwest economy and especially the economy of Wisconsin have benefited over the past eight years from a number of favorable macroeconomic factors. These variables are by now well‑known and amply documented. Some of the more important factors include relatively low interest rates and energy prices. Further, the dollar has depreciated against a number of other currencies which helps our exporting industries. These factors plus our favorable industrial mix have all helped matters in the Midwest.
 

     Analysts are forecasting that the rest of the nation's regions will gain momentum and perform better in the year ahead, thus closing the performance gap with the Midwest. However, the Midwest should still continue to be at the forefront of the expansion. To put this into perspective, the consensus opinion of the National Association of Business Economists is that the entire economy will grow by around 3 percent for 1994. Since the economy is expected to grow at about 3.4 percent during second quarter, the remainder of the year by implication is forecasted to grow at a more moderate rate of less than 3 percent. 

     Wisconsin ranked 10th nationally in job creation over the 1986‑1993 period adding 382,800 new positions, a gain of 19 percent. In contrast, the US added just 11 percent to payrolls. Further, it is reported that 154,000 of the jobs created in Wisconsin during this period paid an average weekly wage of $486 to $638. Moreover, the Wisconsin Department of Revenue is forecasting that personal income in Wisconsin will rise by nearly 7 percent in 1994 representing the largest jump in inflation adjusted dollars since 1978. Per capita income in Wisconsin has trailed the US level for many years. However, the Department of Revenue forecasts that Wisconsin will likely eliminate this gap by the end of the year. For the record, per capita personal income for Wisconsin is expected to reach about $21,000 in 1994. 

     Another item playing a large role in the resurgence of the Midwestern economy is the growth rate of productivity in the region which enhances our competitiveness. The Council of Great Lakes Governors recently reported that productivity. increased by 36 percent in these states during the 1980's. This increase exceeded the US as a whole, plus every other country in the world except Japan. 

     Business Week's cover story of July 11, 1994 deals with the success of the Midwestern economy. This should come as no surprise to readers of the Economic Indicators as we have been touting this situation over the past eight years. In the Business Week article, the evidence cited in support of the superior Midwestern . performance compared to the US as a whole includes a) employment growth, b) immigration to the Midwest by job seekers, and c) the surge in exporting activity. 

     Until such time as the variables influencing growth in our area change, and it is inevitable that they will, the Wisconsin and Midwestern economies should continue to be high spots on the national economic landscape.