LAEDC Expected to Predict Slower Growth in Region

Southern California’s economy is expected to continue growing next year but at a considerably slower rate than it did this year, the Los Angeles Economic Development Corp. is expected to report Tuesday. In its 2001-2002 forecast, the region’s economic think tank also predicts higher overhead costs for businesses, higher housing costs and creeping inflation on consumer goods. All of these factors are likely to affect local gross domestic product--the main measure of the economy--which is expected to grow at a rate of 3.5% to reach $650 billion, compared with this year’s sizzling growth rate of 6.7%. Despite this, nonfarm employment in the five-county region is expected to grow 2.5% to reach 6.9 million jobs.