Prospects for a Rural Recovery

Over the course of the recent recession, rural economies have held up better than their metro peers, thanks to strong rural economic gains early in the downturn. Even so, since 2007 rural communities have endured the steepest and longest economic contraction since the Great Depression. With the worst now over, prospects for a rural recovery appear to rest on rebounding consumer demand. But a jobless recovery may keep the lid on domestic demand, making stronger export activity another critical factor for rural prosperity. Stronger demand and exports can reverse the cyclical downturns experienced during the recession. But many of the long-term structural challenges facing rural America remain: Out-migration is growing, industries are consolidating, and access to financial capital remains tight. In short, the longterm health of rural America in the 21st century will rest on developing policies that focus on amenity-based development, entrepreneurship, and innovation.