Orlando, Florida is in an Economic Depression, Not Recession - What"s the Difference?
Okay everyone has heard the joke: A recession is when your friend loses his job.
A depression is when you lose your job.
Definitions: To answer if Orlando is in a recession or an economic depression you have to first define what the terms mean and see which one Orlando currently fits into.
If you sit down ten economists and ask them what is an economic depression and what is a recession you will most likely get ten different answers.
Recession Is a decline in the Gross Domestic Product (GDP) for two or more consecutive quarters.
Depression Is an economic downturn where real GDP declines by more than 10 percent.
So you could argue a depression is a severe recession.
Which one is Orlando? o In Orlando home prices have declined 24% +/- overall according to mid Florida Realtor MLS statistics in the last 12 months.
o Last month the Orlando CVB reported a decline in hotel revenues of 27%+/- o Unemployment claims in the area have been soaring o Housing starts have almost all but stopped o The construction industry (of which much is undocumented) has been wiped out o Car dealerships are closing all over the city o The time share industry (whom is a major employer for Orlando) is collapsing on itself as financing and credit terms worsen.
Thousands have been laid off in November 2008 alone.
o If there is a brighter side to the doom and gloom it is probably in technology and health care, but the data is still not current enough to determine yet.
Answer Orlando is hurtling to a 10% drop in local GDP and the rate is picking up speed.
Orlando is in a deep recession and within 6 months will most likely be in an economic depression.
There is a huge lag in data from when it happens to when it is gathered and released, but it would appear the writing is on the economic wall for Orlando.
You should plan your business accordingly.
A depression is when you lose your job.
Definitions: To answer if Orlando is in a recession or an economic depression you have to first define what the terms mean and see which one Orlando currently fits into.
If you sit down ten economists and ask them what is an economic depression and what is a recession you will most likely get ten different answers.
Recession Is a decline in the Gross Domestic Product (GDP) for two or more consecutive quarters.
Depression Is an economic downturn where real GDP declines by more than 10 percent.
So you could argue a depression is a severe recession.
Which one is Orlando? o In Orlando home prices have declined 24% +/- overall according to mid Florida Realtor MLS statistics in the last 12 months.
o Last month the Orlando CVB reported a decline in hotel revenues of 27%+/- o Unemployment claims in the area have been soaring o Housing starts have almost all but stopped o The construction industry (of which much is undocumented) has been wiped out o Car dealerships are closing all over the city o The time share industry (whom is a major employer for Orlando) is collapsing on itself as financing and credit terms worsen.
Thousands have been laid off in November 2008 alone.
o If there is a brighter side to the doom and gloom it is probably in technology and health care, but the data is still not current enough to determine yet.
Answer Orlando is hurtling to a 10% drop in local GDP and the rate is picking up speed.
Orlando is in a deep recession and within 6 months will most likely be in an economic depression.
There is a huge lag in data from when it happens to when it is gathered and released, but it would appear the writing is on the economic wall for Orlando.
You should plan your business accordingly.
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