Forecasters predict economic growth to slow in South Dakota

PIERRE, S.D.(WNAX)- While the State of South Dakota has seen very strong sales tax growth over the past two years, forecasts indicate that could slow over the next year.

Jeff Mehlhaff, Chief Fiscal Analyst with the Legislative Research Council, appeared before the Joint Committee on Appropriations this week.

Mehlhaff says say he is still expecting some growth in sales taxes through 2024.

Mehlhaff says other revenue sources will show mixed results.

The state has seen a twenty seven percent growth in sales tax revenues over the past two years.

While some economists are saying the country is entering or already in a recession, it’s a mixed bag for many businesses.

Dave Owen, President of the South Dakota Chamber of Commerce and Industry, says the state seems to be behind this curve too.

Owen says most signs in the state are still positive for now.

Owen says his members are still dealing with many ongoing issues.

Owen says many impacts of a slowdown this year won’t show up until next year.