The country has been hit hard by the pandemic, and San Diego isno exception. Ray Major, chiefeconomist and chief data and analytics officer withSANDAG, spoke about the San Diego economy,unemployment and the recovery during the most recent digitalCREW San Diego event last week. According to hispresentation, San Diego is forecasted to see a 7.1% drop in GDPthis year, wiping out the gains from the last two years andoutpacing national GDP loss.

"San Diego may experience a 7.1% loss in 2020 and a rebound of4.7% in 2021," Major said during the event. "That forecast is basedon that there will be some type of a vaccine and we will be toreturn to normal. But, again, any gains that we have had in theeconomy over the last two years will be wiped out by this event."By contrast, the nation is forecasted to contract 6.9% in 2020,also wiping out gains for the last two years and even into 2017,according to Major.

The impact of the contraction will have a significant impactthroughout the local economy, starting with sale tax revenue, whichis expected to fall 35%. "This is a phenomenal decrease in salestax revenue," said Major. 'We would be expecting decreases of 5% to10% during a recession. We are looking at decreases of 35%. This isgoing on for three months, and it is going to significantly impactthe region's ability to provide services. What will end uphappening is 2021 is extremely lean."