Beebe: State to feel economic pain in 2009 (Updated!)

Updated info:

Moody’s, the closely watched ratings agency, reports that at least 30 states are "In Recession" — including Arkansas. Economists at Moody’s also have looked at Arkansas’ metro areas. The results?

Arkansas Metro Areas
In Recession
Fort Smith
Little Rock-North Little Rock-Conway
Pine Bluff

At Risk
Fayetteville-Springdale-Rogers
Hot Springs
Jonesboro

Previous info:Arkansas Gov. Mike Beebe told reporters Monday that the state will likely feel the effects of the national economic slowdown in 2009. Beebe said state officials might need to use surplus funds to meet budget shortfalls.

National economic trends have yet to be seen in the state’s tax collections. As of Nov. 1, the state posted a surplus of $310.5 million. Beebe is scheduled to release a detailed budget proposal on Nov. 13.

Beebe’s comments fall in line with the consensus view that 2009 will economically be a tough year around the globe. Some market watchers see deep recessions in Asia and other key overseas markets important to U.S. businesses. Continuing with the consensus view, most predictions point to global economic recovery taking place in mid- to late-2010.

Alex Jordan, a senior vice president at Little Rock-based Stephens Inc., predicts the “depth of the problem in the financial system” will push national economic distress into 2010. Improvements “might” be seen, Jordan suggested, by the second quarter of 2010 – and that’s only if problems in developed foreign markets are contained.“It will be difficult to stimulate the economy with a consumer who is afraid to spend,” Jordan said in early October for an interview with the Arkansas Trucking Association. “For most of 2009, you’ll see the consumer retrenching, rebuilding and stabilizing.”

Jordan also noted: “What the American public and the consumer needs to understand on this is that there is no quick fix. It’s time to hunker down, play defense and try to improve your asset base,” Jordan said.