Forecast: KC economy will have to work hard to keep up with peers

The KC Rising initiative set a goal of Kansas City being among the top 10 of its peer cities when it comes to gross domestic product, quality jobs and median household income, but the area has work to do if it’s going to achieve that goal.

Peer metropolitan areas are defined as the 15 immediately larger cities and 15 immediately smaller cities by population. By definition, that makes Kansas City the 16th-largest metropolitan area in its peer group. The area ranks 15th among its peer cities for GDP, 12th in quality jobs and 12th in median household income, according to the 2017 Greater Kansas City Chamber of Commerce Economic Forecast.

The bad news: With a 1.5 percent GDP growth rate between 2014 and 2015, the area ranked 25th among the 31 peer metropolitan areas. Additionally, Kansas City’s quality jobs expanded by 1.6 percent between 2015 and 2016, which ranks only 21st among its peers.

The good news is that real median household income in the Kansas City area shot up 6 percent between 2014 and 2015, ranking second among its peers.

Economists expect the area economy to grow by 2 percent in 2016; national growth is expected to be 1.9 percent. The forecast is for Kansas City to stay steady at 2 percent GDP growth in 2017 and 1.9 percent in 2018.

Read more: Kansas City Business Journal


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