West Virginia's economy will continue to improve despite ongoing struggles in its mining sector.

That was the forecast offered Thursday at the latest West Virginia Economic Outlook Conference.

West Virginia University professor Paul Speaker said the state's gross domestic product should grow by 2.2 percent annually over the next five years, which would be higher than the growth seen since 2005.

Employment should grow more modestly, by 1.2 percent annually. Speaker sees such areas a construction, professional services and manufacturing leading that growth. But the forecast also includes a 1.7 percent annual decline in mining and natural resources jobs.

Speaker said West Virginia's per-capita income should grow over the next five years, and should outpace income growth nationally.

Jeffrey Lacker of Richmond, who is the region's top Federal Reserve official, also spoke at the conference. Lacker said he expects meaningful progress on reducing economic uncertainty now that the elections are over.

Lacker said employers and consumers alike operate under an immense cloud because of the impasse over federal debt and the budget. He said businesses most often mention uncertainty about federal tax and spending policy when they explain why they're not hiring or investing.

With the election over, Lacker said convincing action on those should propel 2013's economic growth beyond the 2 percent he's projected.

Lacker has recently opposed keeping interest rates low. He called such efforts lazy steps that overplay the role monetary policy can play in economic growth.

WVU's Bureau of Business and Economic Research put the conference together.