The state’s economy has finally emerged from the shadow of the 2008 Great Recession, according to a new study from economists at Old Dominion University in Norfolk. If Virginia doesn’t become less reliant on federal government spending, today’s good times might be a setup for another fall. Once a powerhouse state, Virginia lagged the nation as a whole in economic growth for six years in a row, with some quarters tumbling into contraction. Sequestration — the trick Congress used in 2013 to impose automatic government spending cuts — has hamstrung Virginia’s economy ever since. Although it will also boost real estate prices and aggravate transportation problems, the development will be a significant contribution to diversifying the state’s economy, the report said.

Source: Washington Post December 15, 2018 04:52 UTC