SEATTLE \u2014 State lawmakers have been working to understand the state\u2019s economic forecast after a less-than-optimal report.<\/p>\n
While total state revenues are expected to grow between this and the next biennium, that growth has slowed down.<\/p>\n
\u201cWe’re seeing relatively slow growth from what we’ve seen in the past,\u201d David Reich, Executive Director and Chief Economist for the Washington Economic and Revenue Forecast Council, said.<\/p>\n
Reich noted that so far, this year, employment has only grown by about .3%.<\/p>\n
\u201cWhich is very slow employment grow for us,\u201d he said. \u201cSo that’s kind of an indicator that the economy is growing kind of slow.”<\/p>\n
As far as the government shutdown go, which is now in its third week, Reich said those are \u201crelatively modest economic events,\u201d depending on how long they carry on.<\/p>\n
And inflation due to tariffs has been \u201cmore modest than expected,\u201d Reich said likely due to timing, pullback and suppliers picking up added costs, as not to pass it onto consumers.<\/p>\n
“We ‘ve just seen lower price impacts than we would have expected,\u201d Reich said. \u201cWe still expect those to happen just maybe not as large and spread out over 2026.”<\/p>\n
Over 75% of the state\u2019s revenue comes from three taxes: retail sales tax, business and occupation tax, and property tax. Reich said part of the lower-than-expected revenue is in taxable sales.<\/p>\n
But he said not all sectors of the state\u2019s economy are growing slowly right now. <\/p>\n