Business Leaders Discuss Economic Outlook and Strategies for Growth at Annual Breakfast Event

Business leaders and financial experts gathered at the annual Economic Outlook Breakfast in Warwick expressed guarded optimism about Rhode Island’s economic prospects. The panelists discussed the need for the state to adapt to unfavorable market conditions and diversify the economy through investments in education and workforce development.

Stephen Stanley, chief U.S. economist with Santander U.S. Capital Markets, noted that while a near-term recession may be off the table, inflation remains a concern. The Federal Reserve is expected to set new benchmark rates, with the possibility of another rate hike before the end of the year.

Despite concerns about inflation, a survey of middle-income Americans showed optimism about their financial future. The panelists emphasized the importance of nearshoring and attracting international investment to foster growth in Rhode Island.

Governor Daniel J. McKee highlighted bond referendums for a life sciences building and a cybersecurity institute, emphasizing the need to train people for future jobs in the state. However, challenges remain, with labor demand and wages at historic highs.

The event also included a real-time survey of attendees, revealing that while many believe the state’s economy and their own businesses will improve in the next 12 months, challenges such as revenue growth and managing labor costs persist.

Panelist Karl Wadensten of VIBCO Inc. urged leaders to embrace Rhode Island’s spirit of innovation and adaptability to succeed in the new economy. The overall message was one of cautious optimism tempered by the need for strategic investments and a proactive approach to economic challenges.