Forecasting the Economy in Silicon Valley in 2010

SAN JOSE, Calif. (KCBS) -- Even though the unemployment rate jumped up to 12 percent in the South Bay in 2009, leaders are expressing optimism for the coming year.

And that includes San Jose Mayor Chuck Reed.

"I think 2010 will be a better year. I believe we've turned the corner on the economy nationally. We're going to consider seeing some improvement," Reed said. "I'm hoping for better news in 2010 than we had in 2009, although I know it's going to be a long time before city revenues begin to improve again. But, I'm hoping for a little good news as we go into the new year."

KCBS’ Mike Colgan Reports

Silicon Valley Leadership Group CEO Carl Guardino said he is feeling bullish about the innovation economy in the new year.

"Everything I hear from our 300-member company CEO's across industry clusters is that we are continuing to gain strength. That's a good sign," Guardino said. "The only warning sign that I see on the horizon is the commercial real estate market. We have to make sure it doesn't go the way of the residential real estate market. If that happens, we're probably in a double-dip recession."

But Guardino said, with unemployment at such a hgih rate, he's not ready to pop the champagne cork just yet.

(kmi)