According to the Mountain State Business Index, West Virginia is in a recession, and the economy of the state will continue to experience difficulty for the next several months. Ann Ali of the State Journal quoted John Deskins, director of the Mountain State Business Index, as stating, “West Virginia’s economic outlook is “extremely” weak at the moment. It appears that West Virginia overall is in recession and this status is expected to continue into the summer. However, we should be mindful that economic outcomes vary widely across the state, and the outlook is substantially more optimistic in various parts of the state.”
A recession is a decline in activity in the economy that lasts longer than a few months. It affects industrial production, employment, real income, and wholesale and retail trade. The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by the country or state’s Gross Domestic Product or GDP. The GDP is represented by the monetary value of all the finished goods and services produced within a country’s borders in a specific time period. It includes all private and public consumption, government outlays, investments and exports minus imports. A recession usually lasts 18 months. Interest rates are lowered to stimulate the economy by offering cheap rates at which to borrow money.
Increased inflation is another factor that helps to create recession. A general rise in the prices of goods and services decreases the amount that can be purchased with the same amount of money. This is not the time for city, county and state government to be increasing fees and taxes on their citizens.