He said the economy continues to slowly repair itself, but Maine especially is still at risk. Colgan believes problems like the Fiscal Cliff could cause a much larger problem for the state.
"Well, the Fiscal Cliff crisis is not over. Maine is one of the more vulnerable states in the spending part of the Fiscal Cliff, which is yet to be resolved, because of our reliance on defense contracting and because of our reliance on federal dollars in the state budget. So we're pretty much at risk with that," said Colgan, as he delivered his forecast Tuesday morning in Portland.
Colgan said the national economy remains slow growing and something like a crisis over the debt limit could push Maine and other states back into a recession. He said Maine is a very small part of the national economy, and we need the country's economy as a whole to improve greatly in order to feel any benefits.
Colgan's predictions are based on his analysis of employment trends, income, retail sales and a range of other economic indicators.
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