Economists say New Orleans economy has its own set of struggles ahead, and they say the city will have the same challenges as the rest of the nation, in addition to delayed construction projects and businesses, potentially making the road to recovery from Katrina even longer.

The City of New Orleans is already in a unique situation, as it continues its struggle to rebuild. Local economists say the financial meltdown nationally only slows that process.

Jerome Lamba, the city's chief economist, says city projects that are already funded are in good shape. The money is secured and the projects will be completed.

But, there are a few snags up ahead.

"The city did have the intent of going to the market this year for $80 million in GO (General Obligation) Bonds which is being used in conjunction with funding arrangements with recovery that are leveraging projects," said Lamba. "We may not be able to do that right now."

Lamba said that includes street projects and some public facilities projects that will be stalled, but not shut down.

"The liquidity issues beyond getting bonds closings and deals that include tax credits of various types...are going to be delayed until the market for tax credits returns, and until the market for bonds that has to be bought by investors as returns," said Ivan Miestchovich, director of the Institute for Economic Development and Real Estate Research at the University of New Orleans.

As for commercial projects in the private sector, many of which promised to break ground after Katrina, but have yet to progress, economists say as the city continues to struggle with the New Orleans job market, and residents continue struggling to put money into their own pockets, those vacant buildings will likely remain for quite sometime.

"The reality is the economy locally...everything's been sluggish here for 15 years, the city itself has been flatlined for many years in terms of job growth," said Miestchovich.

"I think what happened to a lot of projects...they started looking at risk profiles, growth, economy and the projects didn't pencil out," he said.

Miestchovich said if there is a prolonged recession, there are two sectors which would suffer the most in New Orleans: the Port of New Orleans, in terms of world trade, and the tourism and convention business.