Local economists bullish on economic recovery after COVID-19 vaccine

Local economists say a COVID-19 vaccine is crucial to an economic recovery next year.

And they say looming shutdowns could hit the reset button on small gains this summer and fall.

A slow pace.

But that progress could be hampered as cases continue to rise and shutdowns become more likely.

News 18's joe paul spoke today with two economists and a small business owner.

He's live to share why they remain optimistic about the economic outlook for next year.

Joe?

I'm here in downtown lafayette.

It's the heart of commerce for small businesses and local restaurants.

They've been hit the hardest by the pandemic.

And they still face a lot of uncertainty ahead.

"the only way we get out of this mess is a vaccine."

Purdue labor economist timothy bond says the local economy was on the mend.

But rising covid-19 cases and possible shutdowns could hit the reset button on a recovery.

"if you made me bet on it, i would think that it's more likely we' re going to see a downturn again in december and january."

Bond says the entertainment industry was hit hardest by covid-19.

That industry includes restaurants and bakeries like something blue bakery in downtown lafayette.

Owner makenzie cus says fewer gatherings this year meant less business.

"there's been a lot of adjustments.

I would say the hardest hit was definitely weddings.

Most of them fortunately just postponed."

Cus says she's preparing for more uncertainty in 2021.

"hopefully we still are having weddings, having parties, they just may look a little bit different, they may be little bit smaller."

But bond and purdue financial economist charlene sullivan are still optimistic about a strong recovery next year.

Car and light truck sales have quickly rebounded.

And that's good news for manufacturers like subaru of indiana automotive.

Which is one of the county's largest employers.

"when interest rates are low, things like cars and houses, even though it's not necessarily a good idea for everybody, they can easily get talked into something because the size of the monthly payment is what drives a lot of people."

Sullivan says the county's strong manufacturing and agricultural base make it well-suited for a rebound.

"i think we've got every reason to quickly get back to business if we can get the vaccine."

Bond and sullivan spoke during an economic outlook binar hosted today by greater lafayette commerce.

They're projecting the economy could be back to normal by next summer.

When the weather is warm and the flu and covid season has passed.

That's also when a vaccine is expected to be widely available.

Reporting live in lafayette, joe paul, ns 18.

A shooting at the romney meadows apartment complex