Inflation is one of the bigger concerns because, for now, it means your costs for everything keep rising. Washington’s chief economist, Doctor Steve Lerch, says inflation is expected to peak this year, but at a higher level than the February forecast. “We see it coming down, but around 3% give or take next year,” Lerch says, “and then dropping somewhere into the 1.8, 1.9, 2.2, 2.3% range in 2024.” Oil prices should also peak later this year, so we’ll also keep paying dearly for gas. Lerch says the job market is good, and the demand is helping to push wages up, but they’re still not keeping up with inflation.
Lerch also says supply chain issues still plague us, but after major COVID shutdowns, he says the Chinese economy seems to be opening up, which he says could help with getting more of the things we need. Aerospace took a pandemic dive as people stopped flying and airplane orders were postponed, but that industry is recovering, and that’s helping to turn the manufacturing curve in Washington back upward as well.
The state’s tax collections are $428 million dollars or 7.5% higher than expected in February, but the Fed raising interest rates is expected to slow the housing market, which could cut into Real Estate Excise Tax collections.