Fortunately the floodwaters have receded in the Red River Valley and hopefully will not rise again with the thaw.
Flood dampens North Dakota's economic success
By DAN SEWELL, AP Business Writer – Tue Mar 31, 5:49 pm ET
FARGO, N.D. – North Dakota has largely escaped the recession, enjoying slow but steady growth and even a budget surplus. But as the floodwaters begin to recede, the swollen Red River still threatens to wash away some of that prosperity.
One economist predicts the economic disruption will probably exceed $100 million in lost sales, missed pay for workers and crop-planting delays. And that figure could grow as the flood threat lingers.
Last week, Fargo officials urged "nonessential" businesses to shut down to keep streets clear for emergency workers. Now the city is under pressure to let them reopen.
Excerpt:
Quote:
"We're doing pretty well," said Walaker, who appeared in a TV spot before the flood saying that "negative economic news doesn't apply here."
"The people are conservative. The bankers are very conservative. We don't have any subdivision where nobody lives there," Walaker said.
For those reasons, North Dakota has been a rare bright spot in the national recession.
Strong prices in the oil and agriculture industries have helped the state grow and kept unemployment low. It was at 4.2 percent in January, around half the national rate.
People here are also frugal. Many families acquired the habit during the ups and downs of farming and oil drilling, enabling North Dakota to avoid the brunt of the housing and credit crisis.
The state even has a nearly $1 billion budget surplus, but that has dwindled as oil and commodity prices have tumbled, and flood costs will eat into it further.
|
Article continues: http://news.yahoo.com/s/ap/20090331/...conomic_impact