THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Thursday, July 11, 1996 TAG: 9607110369
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: RICHMOND ASSOCIATED PRESS LENGTH: 45 lines
Virginia made the honor roll for economic development with a B average in three categories, according to a report released Wednesday by a nonprofit group.
``Virginia's economy is one of the strongest in the South,'' the Corporation for Enterprise Development said in its 1996 Development Report Card for the States.
Virginia earned an A in economic performance, unchanged from 1995; a B in business vitality, up from a C last year; and a C in development capacity, one grade lower than a year ago.
Morgan Stewart, spokesman for the state's economic development agency, had not seen the report and said he could not comment on it.
The Corporation for Enterprise Development, based in Washington, D.C., was founded in 1979 and has compiled the report card for 10 years. The study was funded by several unions and foundations and proceeds from sales of the information.
In the report, the group credits Virginia's ``vibrant and improved job market'' as the reason for the A in economic performance. Short-term employment growth was eighth best in the country, the group said.
The state's high mark in business vitality was attributed to a sharp increase in formation of new companies and a decrease in business closings - from 10th worst to 13th best nationally.
A decline in financial resources, including a drop from 25th to 45th nationally in industrial loans, pushed the state's development capacity grade down a notch, the group said.
Virginia fared better than all of its neighboring states except Maryland, which also had an A, a B and a C.
West Virginia got the worst marks of any state with Fs for economic performance and development capacity and a D in business vitality. ILLUSTRATION: VP Graphic
Virginia Economic Development Report Card.
For copy, see microfilm
KEYWORDS: VIRGINIA ECONOMY RATING by CNB