COVID-related restrictions are likely to slow economic growth in North Carolina for the remainder of 2021, according to John Connaughton, professor of financial economics in UNC Charlotte’s Belk College of Business and director of the North Carolina Economic Forecast.
“This experience provides a cautionary note for economists looking forward,” said Connaughton, . “While we like to think that driving components of the economy will dictate future growth, we have to realize that the COVID virus will do what it will do, which will have an overriding impact on future economic activity,”
Connaughton said restrictions due to the Delta variant and a spike in COVID-19 cases are likely to be less drastic than earlier restrictions, and the effect on the economy will not be as serious.
The North Carolina economy is expected to add 126,800 jobs in 2022, reducing the unemployment rate to 4.0% by December 2022, according to the “Third Quarter North Carolina Economic Forecast Report.”