Fiscal Cliff Changes State Economies in 2013

WASHINGTON--(BUSINESS WIRE)--Regional Economic Models, Inc. (REMI), the foremost provider of dynamic economic models for policy analysis, today announced a case study on the economic impact of the federal “fiscal cliff.”

“The fiscal cliff is a very serious situation for President Obama and Congress”

Using the PI^± economic model, Scott Nystrom, Associate Economist, calculated the national impact in 2013 of the fiscal cliff could total 4.2 to 4.4 million jobs lost, 3.6 to 3.8 million private jobs lost, and between $300 to $350 billion in lost gross domestic product (GDP).

“The fiscal cliff is a very serious situation for President Obama and Congress,” said Fred Treyz, CEO and Chief Economist, “and it could easily tip the United States back into a recession in 2013.”

REMI models provide unique economic analysis with a regional focus, including the fifty states. For the fiscal cliff, some regions such as the Atlantic Coast or the Southwest should expect to see a comparably worse impact than others, such as the western Midwest.

“High-level analyses oftentimes lose sight of the concentrated impacts of certain policies,” said Nystrom, “and it is interesting to see what the fiscal cliff does to the healthcare industry and scientific R&D as compared to agriculture or the energy sector.”

REMI is an international, nonpartisan group, based in Amherst, MA, which provides economic models to private, public, and nonprofit organizations. The PI^± model used here includes the fifty states, the District of Columbia, and how they interact with each other.

About Regional Economic Models, Inc. (REMI)

REMI is a leading provider of economic models and policy analysis at the civic, state, regional, national, and global level. Since 1980, REMI has enabled its model users to examine questions about economic development, demographics, energy, the environment, taxation, transportation, forecasting, and regional planning. Governments, universities, consulting firms, and public utilities rely on their models to create realistic, year-by-year estimates of the total effects of policy initiatives on the economy and population. REMI models are customized for regional analysis, based on geography and level of detail, and they incorporate numerous peer-reviewed methodologies within their transparent structure.