Alaska's top business stories of the year.

• Author: Campbell, Melissa
• Position: Year in Review

Throughout much of the year, Alaska's economy felt strong. Unemployment rates were low and residents felt good about spending their money. As interest rates dropped, mortgage loans increased and many more refinanced. Signs of construction were seen all over--from private and residential to commercial and roads.

State economists say the 2002 economy was slightly better than last year while the rest of the nation struggled with a recession. Thousands of workers in several different industries across the Lower 48 lost their jobs. Americans worried about the war in Afghanistan and of the looming conflict with Iraq.

Still, Alaska was isolated. Locally, we paid little attention to proclamations that the gap in the state budget was growing as pundits bickered over how to close the gap during the legislative session. They've been doing that for years, after all.

Alaskans did, however, take notice to a report warning that this year's $1,500 Permanent Fund Dividend may be the last of its four-figure size for some time.

The troubles in the Lower 48 hit home when the stock market plunged, nearly wiping out the fund used to pay the annual dividend. In late October, banks declared that residents were leaving their dividend checks in the bank rather than splurging on nonessential items.

Market woes also struck investment and retirement funds, forcing many in the working class to re-examine, or postpone, dreams of retirement. While no official study has been done locally, anecdotal conversations indicate residents across the state will wait a few years to retire, hoping for a resurgence in the market.

Around the state, the timber and fishing industries continued to look dismal, at best. The oil industry remains in a state of uncertainty after the Conoco/Phillips merger and announcements by other major oil players saying they will likely reduce exploration next year.

The news wasn't all bad. After the terrorist attacks, those in the tourism industry feared people would camp out in their back yards instead of venturing to the Great Land. It didn't happen quite that way.

People did come--about the same number as last year--however, this year's round of visitors didn't spend as much money as their predecessors during the 2001 season.

The construction and health care industries were the Alaska economy's saviors this year. The state saw nearly $5 billion worth of new and continuing projects, including schools, airports, hospitals and roads.

Health care continued to surge as nearly every major hospital has either expanded or is in the process of doing so. And for the first time in recent memory, a medical facility has taken the No. 1 spot on...