Slowdown in growth in Metro DC as rest of U.S. was recovering

Slowdown in growth in Metro DC as rest of U.S. was recovering

First, the good news: The Washington metro region has long been known as an affluent area, and now official confirmation comes from the Census Bureau. Greater Washington ranks highest for median household income among the 25 most populous metro areas, at $90,149. Incomes in second place are San Francisco ($79,624), then Boston ($72,907), which were substantially below DC. Maryland has the highest income by state, at $79,624. Virginiaês median income was $62,666.

But a recent report in the Washington Post offers a more nuanced picture, noting that figures from the Census Bureau show gross domestic product in the Washington metro area fell 0.8 percent in 2013. You donêt have to look far for the reasons: A 16-day government shutdown, $85 billion in sequestration cuts and defense cuts as two wars wound down.

At this point, a government shutdown doesnêt look likely in 2014. But the shakeout from staffing cuts at federal contractors could last for some time. Federal contracts for defense, research and security fell 10 percent from 2012 to 2013, according to the Center for Regional Analysis, reports the Post. Although the Washington metro area has many new restaurants and shops, those jobs tend to be lower wage than the ones that were lost, George Mason University economist Stephen Fuller told the Post.