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Alabama economy expected to contract 3.4%, rebound possible

TUSCALOOSA, Ala. (AP) — A new forecast by the University of Alabama says Alabama’s economy will contract 3.4% this year. But it could be on a normal trajectory toward recovery by the first half of 2021. The assessment by economists Samuel Addy and Ahmad Ijaz says the state’s future will rest in part on how government policymakers respond and how well households weather the COVID-19 outbreak. They say the outlook is better than what was expected in the spring because the state’s decline during the second quarter wasn’t as bad as had been feared.

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