New Jersey Being Impacted By European Debt Crisis [AUDIO]
When Europe itches, Jersey businesses and investors scratch. The continent’s economic woes have an impact on the Garden State.
The European meltdown is weighing heavily on the U.S. economy, with states that rely heavily on exports most at risk from the deepening crisis overseas.
New Jersey does a lot of chemical and pharmaceutical business with Europe. And Rutgers Economist and Europe expert Mitchell Koza says many on Wall Street who are affected by Europe’s troubles live in the Garden State. Beyond that, Koza also points out that that both debt and equity that is traded by people who live in New Jersey, and businesses that operate in New Jersey is really a significant number.
Traditionally, U.S. tourist destinations have benefited from visits by Europeans, especially in the summer. New York is one such place. Unfortunately, New jersey is not a big tourist destination for visitors from the continent.
But the news isn’t all bad. Koza says New Jersey companies, working in a global economy, are able to shift their focus to other parts of the world. And they will return to stronger European trade when Europe once again becomes stronger.
And there are other states, particularly out west, that have no significant ties to Europe. They are not affected by the European economic downturn.
An analysis by Wells Fargo estimates that Utah and West Virginia economies face the biggest risk from the problems in the Eurozone, while many Western states including Wyoming and Colorado are unlikely to see much impact.