Examine the chart above and answer the following questions in at least 200 words.
Place your answers here Currently New Hampshire is in a recovery from the recession that took place in 2020 from the Covid-19 pandemic that swept the entire world. New Hampshire could enter into another recession. However, with the current data that we have right now New Hampshire should not be entering a recession anytime soon unless there is a catastrophic and unexpected shift in the data. The New Hampshire economy and its U.S counterpart it is pretty similar overall. Whenever New Hampshire has been in a recession the U.S has been in a recession as well. It tends to end up leading in a recession against the U.S. Currently looking at the industries in New Hampshire the top three overall would have to be Health Care, Management, and Real Estate companies. These three industries have changed overtime because they were in a very steep decline during the Covid-19 pandemic, and spiked up shortly after the pandemic started to slow down. What I feel like would best benefit the Bank of New Hampshire if they were to be hit with a recession is that they should focus on different regions of economy rather than focusing on a national level due to their main source of income coming from inside of the state due to the banks.
Question to the businesses A regional economic cycle is not perfectly synchronized with its national counterpart, although it tends to move up and down with the national economy. In addition to the broader national economy, two other factors influence a regional economy: the national cycle of its most important industries and its internal growth cycle associated with construction swings. There are two different perspectives to consider in analyzing a regional economy: when a company sells into a distinct local market and when a company produces in a local market and sells into a national or global market.
Please, discuss how the regional economy affects your business and what you do in response.
Response from businesses
| Business | Response from Business |
|---|---|
| Graponne | We are a regional business, so we are more impacted by what is going on in northern New England. From my perspective, the ’08-’09 recession was not as bad in New England as was the ’90-’92 downturn. New Hampshire was hit much harder in the early ’90’s. Many of NH’s largest banks failed in 1992, |
| Bank of New Hampshire | Our primary operating area is NH, and to a lesser extent all of New England, so regional economic cycles are important. We monitor economic data on the state and regional level – Fed in Boston puts out excellent information – and respond accordingly, |
| Comptus | We have no direct regional sales. 50%+ of our revenue is from International sales. Almost all domestic sales are through large distributors, so we have very limited visibility to regional activity. |