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Trump can keep National Guard in Los Angeles for now, appeals court rules; Experts warn of normalization of political violence; FL shellfish industry, communities push governor to ban Apalachicola drilling; Utah weighs cost of repealing clean-energy tax credits.

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White House says decision on Iran strikes will come in two weeks. Conservatives in Congress demand answers on former President Biden's mental acuity, and a new lawsuit could change Maryland's primary election process.

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Giant data centers powering artificial intelligence want cheap rural land but some communities are pushing back, Hurricane Helene mobilized a North Carolina town in unexpected ways, and Cherokee potters make ceramics that honor multiple generations.

What is VA’s economic forecast for 2025?

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Monday, January 20, 2025   

A new State of the Commonwealth report by Old Dominion University finds Virginia had a strong year in 2024. But researchers say challenges remain.

The report finds housing will be a major issue in the state, as local governments work to address housing shortages and zoning laws.

Virginia had its fourth straight year of economic growth in 2024, ranking as the number one state to do business.

Bob McNab, professor of economics at Old Dominion University, said the overall outlook for Virginia in 2025 is positive. But he said a number of factors may impact that forecast.

"We saw inflation decelerate, real wages - that's wages after inflation - rise, jobs continue to increase," said McNab. "As Virginia enters 2025, it is in a good position to continue growth."

McNab did warn that international trade, immigration, and the status of the federal workforce could impact Virginia's economy.

Despite data that points to a strong economy, consumers aren't quick to agree.

The report finds consumers still feel less optimistic about the state of the economy than before the COVID-19 pandemic.

Higher prices on goods and services because of inflation have driven that sentiment. McNab said people interact with prices daily - and their paycheck may be once or twice a month.

That, he said, leads to the data not coinciding with consumer feelings on the economy.

"And since 2019, real hourly earnings have increased after accounting for inflation," said McNab. "People's wages have outgained inflation. But they don't feel like that has occurred because they see prices much more frequently."

The report also finds Virginia's unemployment rate is nearing record lows.




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