Oklahoma may avoid economy woes

A panel of research economists confirmed Monday what many local economists had been saying for weeks: The U.S. economy is in a recession.

However, Oklahoma’s economy remains in better shape than those of many other states, and Oklahomans could avoid some of the pain that has and will be felt across much of the nation, University of Oklahoma Economist Robert Dauffenbach said.

"You have to feel pretty good about where we sit in Oklahoma in a relative sense,” the OU economist said.

Economist Steven Agee of Oklahoma City University said although the state economy has slowed, it does not appear to be in a recession.

"We still have good growth potential here,” Agee said, pointing to early reports of brisk holiday sales at local retailers and strong activity in the energy sector.

To a large extent, Oklahoma escaped the excesses of the national housing bubble, Dauffenbach said, and thus has been spared much of the resulting collapse in prices and lending.

Although oil and natural gas prices have fallen dramatically in recent months, those commodity prices remain at historically high levels, and continue to boost state tax revenue, said Dauffenbach, director of the Center for Economic and Management Research at OU’s Price College of Business.

Agee said lower gasoline prices, while cutting profits for the state’s energy sector, have benefitted local consumers.

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