Oregon economic growth narrows gap with national average

Oregon’s economic growth is beginning to align with the national average after years of underperforming following the COVID-19 pandemic. State economists Carl Riccadonna and Michael Kennedy reported that Oregon’s economic output increased by 2.4% over the past year, significantly narrowing the gap with the 2.7% national growth rate.

While the state’s 5.2% unemployment rate remains higher than the national average, economists noted that growth is being driven by sectors such as hospitality, real estate, entertainment, and finance. This progress comes despite contractions in manufacturing and construction, as well as previous headwinds including high fuel prices and job losses at major employers like Intel and Nike.

State revenue forecasts also show improvement. The current biennium revenue is projected to be $55 million higher than the May forecast, and the 2027-29 biennium is expected to see an increase of $538 million. This boost is largely attributed to an unexpected rise in personal income tax revenue, suggesting higher wages even as corporate income tax declines. These findings provide a more positive outlook for lawmakers as they prepare to negotiate state spending priorities in the coming year.