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Alabama Economy - The current economic recession has been longer than the recessions of 1990-91 and 2001. With recession continuing in 2009, the gross domestic product is expected to decline significantly in the current quarter. Alabama unemployment rate has risen from 3.7 percent to 6.7 percent in December 2008. Slowing demand will hit every sector of the economy particularly manufacturing and retailing industry. However, with the stimulus package, Alabama economy is expected to grow by 0.3 percent in 2009. If the package is not implemented in timely manner, then the state economy would contract by 1.0 - 1.9 percent.