Southern Illinois News

Recently released federal data shows Illinois fairing poorly economically, with the economy shrinking by 5.4% in the first quarter of 2020, but still doing better than some of the state’s nearest neighbors.

In comparison to Michigan, where the economy shrank by 6.8%, Illinois looks especially good, according to a recent article published by The Southern Illinoisan. And the state also stayed ahead of Indiana’s economy, which shrank by 5.6%, as well as Kentucky’s, which shrank by 5.8%.

But swinging north or westward, the comparisons go south. Up in Wisconsin, the economy kept ahead of Illinois’ losses, only falling by 5%.

University of Illinois economist Fred Giertz | LinkedIn

Missouri's economy shrank by 4.7%, and Iowa's by just 3.5%. The figures reflect the earliest days of the economic crisis fueled by COVID-19, with the cut-off in measurements coming at the end of March.

Yet, University of Illinois economist Fred Giertz told The Southern Illinoisan that almost all of Illinois’ losses are attributable to the period in March after Gov. J.B. Pritzker began shutting down the state.

“All the evidence suggests that the first two months of January and February were not impacted very much by the virus issue, but then they have a huge impact in March even though the formal shutdown didn't begin until the last week or so of March,” he told the publication.

Hit hardest was the entertainment and recreation sector, with losses of 36%, followed by accommodation and food service at more than 27%, according to The Southern Illinoisan.

“Things are clearly turning around now but that turnaround could be halted almost any time if we had another kind of outbreak,” Giertz said.