Economists are positive that Arkansas is showing signs that its economyremains strong and could actually recover from the recession more swiftly thanthe other states, despite still having a substantial unemployment rate.

Sales tax collections in Arkansas grew by 7.2 percent compared to thenationwide growth in the country’s retail trade this year. This shows thatalthough the state could not possibly escape the effects of the financial andeconomic downturn, its economy is relatively stronger to sustain the brunt ofthe recession.

In fact, Arkansas had posted a consistent increase in its sales taxcollections for straight quarters, the recent being 0.9 percent for the thirdquarter. This could be a sign that Arkansas is recovering much faster than anyother state in the country.

Sales activity is an important indicator of a marketeconomy.

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Homeowners in Arkansas are also relatively safer from foreclosures sinceproperty prices have remained stable. The state also ranks third in the nationfor having the lowest number of foreclosures in subprime lending and has lowerforeclosure incidents in other loan categories as well.

While Northern Arkansas may be showing a bit more foreclosures, still thearea is known for having the lowest unemployment rate at 6.1 percent among thestate’s metro areas. Pine Bluff has the highest unemployment rate at 9.6percent with Jonesboro exhibiting a 1 percent hike since the economicdownturn,

The recession had cost the state some 50,000 jobs over the years buteconomists are expecting that these job losses will be replaced by newopportunities at least by the mid-half of 2012. This gives the state a goodenough leeway to recover its ground and reclaim its growth before the countrywas hit by the economic recession.

Economists believe that the fact that Arkansas had always been at least 2percent below the national unemployment rate means that it has a better chanceat building and employing its work force. This could put Arkansas at the helmof the nation’s march towards economic recovery.

Governor Mike Beebe recommended an increased fiscal budget for the year2011, which is at least 0 million up from last year. Congress will convene onJanuary to discuss the state’s proposal and fiscal budget.

The Arkansas Finance Department is confident that the state will continue toexhibit growth and improvement in the coming months.

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