Written for Southern policymakers, this report forecasts economic changes in the South. It addresses demographic factors, traditional economic concerns, and emerging economic realities which already influence, or are likely to influence, economic life in the South. Trends and issues include: (1) the aging of the population largely due to retirees moving into the region; (2) the returning migration of blacks with different socioeconomic backgrounds; (3) the future change in supply of and demand for the South's labor force as a consequence of reduction in young labor market entrants and an increase in the net labor force; (4) the metropolitanization of the economy; (5) components of the "new" business climate characterized by intense competition; (6) the increasing importance of southern agriculture and lumber industries; (7) the emergence of an information economy and the need of new information infrastructures; (8) telecommuting (flexibility in the work site due to use of computer and communication technology); and (9) protection of future quality of coastal and surface waters. Each section lists policy considerations associated with the issue presented. A list of selected resources on each topic is also included. (KS)