Saturday, 22 October 2011: 9:40 AM
The world-wide contraction in economic activitiy that became obvious in 2008 necessarily also had an impact upon regions and localities. A region such as Hampton Roads, VA (population 1.6 million) initially was not impacted heavily because 45 percent of its gross regional product is derived from defense expenditures, which continued to increase, though at much more modest rates than previously. Soaring federal deficits, however, soon focused increased attention on defense spending and the Department of Defense announced a series of expenditure reductions focused upon Hampton Roads. Combined with other factors, this pushed the region's growth rate below the national average.