Economist: hiked value of US dollar caused by Europe debt crisis hurting Wyo. energy prices

Economist: Europe debt hurting Wyo. energy prices

CHEYENNE, Wyo. — The state’s economy will benefit if Greece and other European countries don’t default in their debt crisis and if their government spending is reduced, an economist said Tuesday.

Creighton University economist Ernie Goss said Wyoming’s economy should improve if the value of the dollar comes down, which should happen “when things get settled in Greece.”

“If so, then I’m very bullish on energy, very bullish on agriculture,” said Goss, who spoke at an economic forum sponsored by the Wyoming Business Alliance and the Wyoming Heritage Foundation.

The European debt crisis is driving up the value of the U.S. dollar, which makes American products more expensive in foreign markets, he said.

“That has hurt Wyoming,” he said. “It will continue to hurt Wyoming because it makes energy less competitive. It drives down the prices of oil, it drives down the prices of natural gas to a lesser extent.”

Steady growth in China, Indian and Indonesia should help energy prices because growing economies need increasing amounts of energy, Goss said.

Other uncertainties constraining the economies of Wyoming and the nation include those about health care reform, taxes, cap and trade, China and government spending, he said.

Reduced government spending is a key to solving the financial problems besetting countries, Goss said.