Dec 27, 2010
Economists are expressing confidence in the region's economic performance with a consensus view that Silicon Valley will avoid a 'double-dip' recession in 2011.
Here are some Silicon Valley economists' and business executives' predictions for 2011:
- Pay will increase, especially in tech, where competition escalates.
- Jobs in technology and health will continue to flourish.
- Consumer spending will improve, boosting small businesses.
- Housing prices will stabilize and commercial deals will escalate.
Silicon Valley's big technology firms have experienced a healthy rebound from the economic doldrums and are optimistic about 2011, with most planning to hire.
"We're starting to set export records again," declared Stephen Levy of the Center for Continuing Study of the California Economy.
Skype is moving into new Palo Alto offices and will hire 300 new employees in 2011. Intel sees bigger global demand for its products. Google and Yahoo! are restructuring for increased profitability.
The City of San Jose Economic Development Office is reporting more calls from businesses wanting to relocate to the city.
"Over the past year, housing prices in many parts of California, including Silicon Valley, appear to have stabilized," stated Jed Kolko of the Public Policy Institute of California. "The stabilization of housing prices in Silicon Valley is good news for the area economy."
Silicon Valley's future growth in personal income looks secure to most leading economists, who see positive economic territory ahead.
In 2011, The University of the Pacific Business Forecasting Center sees a 4.2-percent increase, while Beacon Economics forecasts personal income growth at a higher 4.7-percent in 2011.
Silicon Valley is on the ball, back on track, and right on time in 2011.