The Oregon Office of Economic Analysis released its economic forecast on Wednesday morning and the picture is bleak for the Beaver State.

The forecast “projects a slowing Oregon economy in 2008 which continues into the first half of 2009,” due to continuing financial instability in the markets, a worsening housing market and rising energy prices. The forecast also projects a continued rise in unemployment, as well as a continued decrease in state revenue projections.

The negative economic picture will impact the state’s political leaders, who will have to adjust their agendas to deal with decreasing state revenue and shrinking budgets.

Read the summary of the economic forecast here (PDF).

Watch PolitickerOR.com on Wednesday for reaction from the state’s political leaders.