The 2015 BABC Annual Economic Lunch was held at the beautiful ‘City Club of San Francisco’. Moderated by Elizabetta Ghisini of Verba, the event provided attendees with a thorough overview of the state of the current economy. The panelists for the event included: Wells Capital Management’s Senior Economist Gary Schlossberg, President of the Bay Area Council Economic Institute Sean Randolph, and Roxane Divol, SVP and GM of Symantec Trust services providing the day’s guidance and expertise.

Gary Schlossberg predicted global moderate economic growth and recovery in 2015. He emphasized the necessity for self-sustaining growth in the U.S. and discussed the effects of the European Central Bank’s policy of quantitative easing. Mr. Schlossberg further discussed his opinions on deflation, Federal Reserve Interest Rates and the strengthening Dollar.

California and Bay Area economist Sean Randolph next provided a more specific, regional economic overview. Mr. Randolph delivered the news that state employment levels have passed their 2007 peaks and discussed the positive influence of technology, construction, trade and tourism on the Sunshine State’s burgeoning economy. Whilst issues such as a lag in the growth of wages, and the state’s dependence on personal income tax for revenue provided some cause for concern, Mr. Randolph remains optimistic about California’s economic prospects in the coming year.

His analysis of the Bay Area proved even more positive than that of California as a whole. Regional employment has recovered from the recession and has passed its December 2000 peak, whilst wage growth is by far the highest in the state. Mr. Randolph saw the area’s unique innovation economy as the driver of regional growth. He spoke of the growth in the tech Industry providing the catalyst for growth in construction and supporting services. He expected 2015 to continue in this manner, with further decreases in unemployment, more construction activity and increases in real estate values. Future concerns included slowing growth in the global economy, an emergence of a barbell economy and housing costs that could constrain future growth.

Roxane Divol began her discussion with the global tech trends that benefit the Bay Area. The rapid ascension of internet usage in emerging economics such as India and Indonesia, the growing influence of the cloud in the IT market and the rapid rise of mobile usage are all examples of factors that greatly assist the Bay Area economically. Ms. Divol also focused on the necessity for cyber security, and how it is now on every Board of Director’s agenda, and is a matter of national security. Ms. Divol predicted that the Bay Area economy would continue to foster innovation, with the demand for skilled workers having never been greater.

With a lively panel discussion and numerous questions from the audience, the 2015 BABC Annual Economic Lunch provided an enlightening and stimulating discussion. The BABC would like to thank our sponsors Squire Patton Boggs, Sperry Van Ness, British Airways, Wells Fargo, Bay Area Council and 20/20 Productions. Furthermore, thank you to our panelists: Gary Schlossberg, Roxane Divol and Sean Randolph for their time and expertise, moderator Elizabetta Ghisini for seamlessly guiding the event to flow smoothly, and all attendees whose participation and enthusiasm once again made the event a resounding success.