Dueling National Reports Paint Very Different Pictures of RI’s Recovery From Pandemic

Dueling National Reports Paint Very Different Pictures of RI’s Recovery From Pandemic

There are two national studies that paint very different pictures of Rhode Island’s recovery from the pandemic.

Governor Dan McKee’s administration is claiming that Moody’s “Back-to-Normal Economic Recovery Index" is the research to follow. They promote it in their press releases and it is part of McKee's talking points.

 

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Moody's Ranks RI High

“Rhode Island has also ranked among the top 10 states nationally and led the Northeast in Moody’s Back-to-Normal economic recovery index for the last several months. In the most recent rankings, Rhode Island ranked fourth in the nation and first in the region,” said the McKee Administration in a press release last week.

“The pandemic economy is far from normal. So Moody’s Analytics and CNN Business have partnered to create a proprietary Back-to-Normal Index, comprised of 37 national and seven state-level indicators. The index ranges from zero, representing no economic activity, to 100%, representing the economy returning to its pre-pandemic level in March 2020,” states Moody’s.

According to the Moody’s Index, Rhode Island has recovered all of its lost jobs and more scoring 101% back-to-normal.

McKee is touting the recovery but also calling for tens of millions in grants to small businesses.

For most Rhode Islanders, that data is difficult to comprehend as hundreds of businesses have closed and equally harmful to the economic recovery is that tens of thousands of workers have not returned to the workforce. Rhode Island's small business' windows are littered with "Help Wanted" signs.

 

 

Rhode Island Ranks Last

In contrast, another national study has Rhode Island ranked 51 as the least recovered state since the beginning of the pandemic that started in March of 2020.

Rhode Island ranks behind all other states and the District of Columbia, in the WalletHub ranking this week. 

While Rhode Island finished last in the WalletHub ranking, Florida led the country in recovery followed by South Carolina and New Hampshire.

WalletHub also finds that overall the “coronavirus has wiped out nearly all the jobs gained since the Great Recession."

McKee however claims the state is succeeding -- in contrast to the ranking. 

“The recovery has been strong for many Rhode Island businesses and workers. In fact, the State reported a 7.5 percent increase in real gross domestic product in the second quarter of 2021, exceeding the growth rates of the United States and the New England region," said McKee on Thursday. 

University of Rhode Island's economist Len Lardaro says he sees signs of significant improvement.

"[July's data] signifies that our economic momentum has clearly been accelerating over the past four months and that Rhode Island's economy is definitely in a recovery -- or more aptly a restoration," says Lardaro.