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The Washington Economics Group, Inc. August 19, 2014 Page 1

MIAMI-DADE ECONOMY EXPANDING STRONGLY IN LATE SUMMER OF 2014Summer Issue-2014

The Miami-Dade Economy (MDE) is performing above Florida and National

averages, led by solid growth of key industries and a revival in construction activity.Indeed, the whole South Florida marketplace, including Ft. Lauderdale and West

Palm Beach metro areas, is leading the State in employment growth and overall

economic activity.

The table below highlights payroll employment growth in the MDE through July,

rank-ordered by growth rates over the 12 months ending in July 2014.

Miami-DadesPayroll Employment Growth Leading the State

(July 2014/July 2013)Sector

Over-the-Year Change

Level Percent

1. Construction +2,300 6.9%

2. Health Services +2,600 5.8%

3. Manufacturing +2,100 5.8%

4. Transportation/Wholesale Trade +3,500 5.5%

5. Financial Activities +3,900 5.4%

6. Retail Trade +7,200 5.3%

7. Leisure/Hospitality +5,900 4.8%

8. Professional and Business Services +4,400 3.0%

Sources: Florida Department of Economic Opportunity (D EO) and The Beacon Council .

As the data above demonstrates, most of the key industries of the MDE are enjoying

employment expansion. In essence, the MDE economic recovery is on a sound

footing. We expect this positive trend to continue for the remainder of 2014, given

the widespread momentum of employment growth in top industries of the

MDE. This, in turn, translates into greater consumer and investment spending

throughout the economy.

Looking beyond the next several months, there are a number of possible risks to the

strong growth of economic activity. These potential downside risks should be

considered in business plans for 2015. Among recent developments are the

following:

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The Washington Economics Group, Inc. August 19, 2014 Page 2

The Federal Reserve is expected to begin slowly increasing short-term interest

rates in early 2015. Indeed, Quantitative Easing #3 (QE3) is expected to end in

October of this year.

Global economic activity, a key external driver of the MDE, has started to

slowdown in mid-2014. The European Union economic recovery has stalled,while geo-political risks of an aggressive Russia have increased uncertainty.

Finally, a few key markets of the MDE in Latin America are also registering

slower growth this year, with little prospects for a strong pickup in economic

activity during 2015. This is highlighted in the table belo w:

Key Trade Partners of MDE Experiencing Slower Economic Conditions

CountryGDP Growth

2014Comments - 2015

Brazil 1.4% Modest pickup

Argentina FLAT Recession likely

Chile 3.0% Modest pick up

Peru 4.8% Modest pick up

Venezuela -0.5% Deep Recession

Source: UN ECLAC and Comments-2015 by The Washington Economics Group, Inc. (WEG)

There are, however, bright spots in the economic landscape of Latin America and

the Caribbean, with strong growth prospects for 2015. Among these are Colombia,

Costa Rica, Guatemala, Mexico and the Dominican Republic.

In conclusion, the business environment in the MDE has improved in the first half of

the year. There is positive momentum for continued strong economic expansion in

the second half of 2014, led by the construction, travel and hospitality, business

services and retail trade industries, among others.

By:The Washington Economics Group, Inc.

Summer Iss ue - 2014