The Economy

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Idaho’s Economy Slows

Boise--Economist Jeff Thredgold wrote in the latest issue of Zions Bank’s Insight magazine that the state’s slow economic pace could continue well into next year.Thregold pointed out the 1 percent drop in total employment from a year ago can be blamed directly on an “extremely weak” home-construction sector, softer prices for homes and struggles in the high-technology sector.

The 1 percent drop in total employment compares to average annual increases of 3.5 percent in the 2004-07 period. In the report Thregold addressed the credit crisis: “The Idaho economy, like that of other states, has been severely impacted by higher credit costs, and more limited credit availability for homes and proposed commercial real estate ventures. Many aggressive mortgage lenders have closed their doors during the past 24 months, while many others have required larger down payments and greater levels of paperwork.”

Stagnation in Idaho, he wrote “is a vivid reminder that what happens outside of the state’s borders can have both positive and negative influence upon the state, its companies and its citizens.”