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V O L . X X I V N O. I JA N UA R Y 8 , 2 0 1 8 10 1. What are some areas of growth in Maine? DeLutio: Tourism is doing very well. Every year seems to bring a new visitation record and savvy businesses are expanding into higher-margin prod- ucts and services. As a result, since 2010, the output of Maine's accommodation and food services indus- try has grown three times faster than the rest of the economy (6.7% average annual GDP growth versus 2.2%). Looking geographically, Greater Portland is clearly Maine's urban economic engine. Since 2010, more than half (58%) of employment growth has occurred in the Portland-South Portland metro area, which encompasses parts of Cumberland, York and Androscoggin counties. Damicis: Health care is growing as demand increases, driven by an aging population, technology and service delivery advances and further integra- tion with retail and distributed service delivery. Maine continues to grow around its thriving food economy, driven by its resources and quality brand. is includes everything from local agriculture, fi shing, food processing, specialty food production and breweries, as well as its rapidly growing and nationally recognized restaurant scene. Maine will continue to experience the transformation occur- ring globally around the "tech of everything" as digital technologies infi ltrate and disrupt all sectors and create new opportunities in "heathtech," "fi n- tech," "agtech," manufacturing industry 4.0 and the Internet of ings, as well as other sectors. Iris: ere are several areas that may potentially drive growth in Maine in 2018. Given state demo- graphics, health care and elder care demand will likely increase as the baby boomer generation ages, with life expectancies trending longer over the long term. Local food-and-beverage specialties are a perennial tourism draw, aided by growth of cruise- ship landings. Business services and technology are additional potential areas of growth. On the tech- nology front, the state has a leadership position in the animal health sector, which should continue to drive growth. Rector: Maine saw another strong year for tour- ism in 2017, as favorable weather conditions and low gasoline prices coincided with continued economic growth. Lodging sales, which are closely tied to the tourism sector, likely broke $1 billion for the fi rst time in 2017. Breweries and distilleries continue to expand across the state, with growth in some related agricultural areas as manufacturers look to source locally grown hops, malts and grains. e greater Portland area has seen both robust growth in com- mercial real estate and continued expansion of the International Marine Terminal, which provides new opportunities for Maine products to reach interna- tional markets. Bouvier: Maine has great potential in renewable energy, aquaculture, local foods and ecotourism. All these industries rely on investments in natural capi- tal, such as clean air and water, as well as incentives for the environmentally responsible use of natural resources. We need to encourage responsible eco- nomic development, but not at the expense of the quality of life of current and future Mainers. H eading into 2018, it's clear that predicting the economic future is a risky endeavor. Global politics, jittery fi nancial markets, rising interest rates, shifting policies — all can create chaos for the economy. Maine is often among the fi rst to experience an economic downturn and among the last to recover. With that in mind, we asked fi ve experts — a few economists, an investment adviser and a public policy analyst — their outlook for the Maine economy in 2018. Some of the themes may have a familiar ring, including the historically low unemployment rate and the need for qualifi ed workers. But some of what they said might surprise you. Catherine Reilly deLutio Former Maine state economist, Catherine a partner at 45 North Research. This is her fi rst time contributing to Five on the Future. Rachel Bouvier A private consultant and economist at RBouvier Consulting, Rachel is contributing to Five on the Future for her second time. Jim Damicis Senior vice president at Camoin Associates, Jim is also contributing to Five on the Future for the fi rst time. Stefan K. Iris A chartered fi nancial analyst and chief investment offi cer at Camden National Wealth Management, Stefan is contributing to Five on the Future for the fi rst time. Amanda Rector Current Maine state economist and a longtime contributor to Five on the Future. T H I S Y E A R ' S F I V E E X P E R T S Keeping a wary eye on the economy B y P e t e r V a n A l l e n

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