1. January 26, 2009 The Economy in 2009 and Beyond Stephen S. Fuller, PhD Dwight Schar Faculty Chair and University Professor Director, Center for Regional Analysis School of Public Policy, George Mason University Design Build Institute of America

2. U.S. Gross Domestic Product Quarterly Change: 2006 – 2011 % 2006 2007 2008 2009 2010 2011 Source: Global Insight Forecast > > > > > > > > > > >

3. GDP Percent Change (Real Dollars) %

4. CURRENT CONDITIONS

5. ISM Manufacturing and Non-Manufacturing Indices Non-Mfg Mfg

6. Annual Change in Payroll Jobs - US THOUSANDS Dec = - 2.81 Mil Source: BLS Establishment Survey

7. U.S. Unemployment Rate % Source: BLS, Seasonally Adjusted Dec = 7.2 %

8. Housing Trends: New & Existing Home Sales Existing (left scale) New (Rt Scale) (000s)

9. Consumer Confidence 100 Present Situation Expectations Source: Conference Board, GMU Center for Regional Analysis

10. Growth in Total Consumption Outlays % Source: Global Insight, January 2008, GMU Center for Regional Analysis

11. The Washington Economy

12. US GDP and Washington GRP % Washington GRP US GDP

13. U.S. Washington Area GRP Change 3/01 - 11/01 (8)2.5 % 7/90 - 3/91 (8)0.2 % 7/81 - 11/82 (16)3.1 % 1/80 - 7/80 (6)2.3 % U.S and Washington Area Recent Recessions

14. 2009 Structure of the Greater Washington Economy Local Business 38.9% Non-Local Business 11.8 % Federal 33.3% Procurement 15.4% Assn 2.2% Hosp. 2.0% Int’l 4.8% Other 7.0% Other Federal 17.9 % Other: Health/Education, Media, Lobbyists

15. Annual Change in Jobs 1991 – 2007 Washington Metro Source: BLS, GMU Center for Regional Analysis Thousands Avg = 46,600

16. Annual Job Change Washington Metro Area Source: BLS, GMU Center for Regional Analysis Annual Change Annual Month-over-the-Year 2007 2008 000s 46.6

17. 15 Largest Job Markets Job Change Nov. 07– Nov. 08 Thousands Washington + 31,100 Ranked by Total Jobs

18. Percent Change in Jobs By Sector U.S and Washington MSA Last 12 Months Source: BLS and GMU Center for Regional Analysis %

19. Unemployment Rate % Source: BLS, Not Seasonally Adjusted U.S. Washington

20. 15 Largest Job Markets Ranked by Unemployment Rate November 2008 % U.S. 6.5 Data not seasonally adjustedSource: BLS, GMU Center for Regional Analysis 4.4

21. Sales and Total Active Listings Washington MSA, December Each Year Listings Sales 1000s

22. Units Sold Percent Change By Subregion All Housing Types % NVA MSA DC SMD 2007 2008 Source: MRIS, GMU Center for Regional Analysis

23. Housing Price Index Trends U.S. and Washington Metro Area Both Series Indexed to 1976 = 100 Source: Federal Housing Finance Agency (OFHEO) and GMU Center for Regional Analysis Conforming Loans Only

24. Average Sales Price All Housing Types Washington Metro Source: MRIS, GMU Center for Regional Analysis $ + 8.0 %/year

25. Area2007 Price2008 PriceChange% Change Dist. Of Columbia$537,400$543,500+ $6,100+ 1.1 % Arlington$559,000$539,300- $19,700- 3.5 % Alexandria$502,900$471,200- $31,700- 6.3 % Montgomery$550,200$503,900- $46,300- 8.4 % Prince George’s$331,100$290,200- $40,900- 12.4 % Fairfax$542,000$445,900- $96,100- 17.7 % Loudoun$516,800$389,000- $127,800- 24.7 % Prince William$395,000$257,900- $137,100- 34.7 % MD SUBURBS$435,800$400,400- $35,400- 8.1 % VA SUBURBS$488,300$373,200- $115,100- 23.6 % METRO AREA$468,700$394,700- $74,000- 15.8 % Annual Price Changes by Jurisdiction Source: MRIS, GMU Center for Regional Analysis

26. Metro Comparisons Mortgage Foreclosure Rates Q3 - 2008 Foreclosures /10,000 Owner-Occupied Units Source: RealtyTrac, GMU Center for Regional Analysis

27. Mortgage Foreclosure Rates by County – Jan 08 & Jan 09 Foreclosures /10,000 units Source: RealtyTrac, GMU Center for Regional Analysis Jan 2008 Jan 2009

28. Outlook

29. Economic Outlook (GRP) – 2013 Washington Area and Sub-state Portions (Annual % Change) % DC SM MSA NV Source: GMU Center for Regional Analysis

30. Employment Change by Sub-state Region (000s ) 2007200820092010201120122013 D.C.7.26.65.56.06.47.06.5 Sub. MD 5.86.56.010.712.514.316.4 No. VA 15.512.512.219.823.526.831.1 REGION28.525.623.736.542.448.154.0 Average Annual Change 1990-2007 = 46,600 Source: BLS, GMU Center for Regional Analysis

31. % Source: Global Insight, GMU Center for Regional Analysis GDP/GRP 2000 - 2012 Washington U.S.

32. www.cra-gmu.org