THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Wednesday, December 14, 1994 TAG: 9412140422
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER
LENGTH: Short : 41 lines
Hampton Roads can expect slower growth in 1995 as its economy bridges the transition between defense downsizing and diversification of its job base, a regional economist said Tuesday.
Christine Chmura, chief corporate economist for Crestar Bank, told the Economics Club of Hampton Roads that the region faces opportunities resulting from possible base closings in 1995.
``Private firms are getting out from the defense area,'' she said.
Also speaking at the forum was Marshall Loeb, editor-at-large of Fortune magazine. Loeb called on the Hampton Roads' cities to pull together to lure new businesses to the region, instead of competing with each other.
``Be unified,'' he said. ``Quit sniping at other cities next door, across the region, over the water or across the bridge.''
The region's long-term health could hinge on the fate of its military bases, to be determined at the next meeting of the Defense Base Closure and Realignment Commission next March, Chmura said. If local bases close, it could open up prime real estate for development, she added.
Hampton Roads will retain its military job base, but it continues to diversify into other industries and markets. Tourism and international trade will fuel the region's future growth, Chmura said.
In the short term, she predicted that the Federal Reserve Bank will raise interest rates again at its December or January meeting, which will slow the housing market and car sales. Magazine editor Loeb also predicted one, and possible two, additional interest rate hikes.
Two more minor rate hikes ought to be enough to tame inflation without severely hampering interest-rate sensitive industries, like home building, he said.
KEYWORDS: ECONOMY HAMPTON ROADS by CNB