Economic Forecasts Reveal Mixed Growth for Albuquerque's Retail and Construction Sectors

During the recent Albuquerque City Council meeting, significant discussions centered around the city's economic outlook and the challenges facing local businesses, particularly in the retail sector. The meeting highlighted the latest Gross Receipts Tax (GRT) report, which indicated a mixed economic performance for the fiscal year 2025.

The GRT report revealed a slight decline of 1.1% in January, followed by a rebound of 4.7% in February compared to the previous year. Cumulative growth for the year reached 2.6%, slightly above the 2.1% growth rate projected in the city’s budget. However, the retail sector continues to struggle, with a cumulative growth of only 1.3% for the year, raising concerns among council members about the sustainability of local businesses.

Councilor Lewis expressed concern over the retail sector's performance, noting that while there was a month-to-month increase, the overall trend for the fiscal year has been troubling. The discussion pointed to broader economic uncertainties, with council members questioning the impact of online sales on brick-and-mortar stores. Currently, the state does not provide specific data on online sales, which complicates efforts to understand the full scope of retail performance in Albuquerque.

The council also discussed the importance of obtaining more detailed economic data, particularly regarding online sales, to inform future decisions. Councilor Pena emphasized the need for transparency in understanding how online shopping trends are affecting local businesses, suggesting that the city should push for better data collection from the state.

Looking ahead, the next economic forecast from the University of New Mexico's Bureau of Business and Economic Research is scheduled for May 2, which will provide further insights into the city's economic trajectory. Council members expressed a desire to analyze this data closely to better support local businesses and address the challenges they face.

In conclusion, the meeting underscored the need for ongoing dialogue and data-driven decision-making as Albuquerque navigates its economic landscape, particularly in light of the challenges posed by changing consumer behaviors and market conditions. The council's commitment to understanding these dynamics will be crucial in shaping policies that support the local economy and its residents.