NATCHEZ — Perception is worse than reality when it comes to the Mississippi economy.

State Treasurer Tate Reeves said this is the case with the state’s economy and that Mississippi is actually faring well when it comes to the national recession.

Reeves expounded on the economy during the Natchez-Adams Chamber of Commerce Quarterly Membership Luncheon Tuesday.

“We’re actually doing about as well these first six months in the fiscal year as compared to last year,” he said. “We are in decent shape as it relates to revenue.

“Mississippi is actually doing very, very well from an economic standpoint.”

He said compared to other states, Mississippi isn’t quite feeling the economic crunch.

“When you don’t experience the huge booms, you typically don’t experience the huge busts,” Reeves said.

Also, he said the financial institutions of Mississippi have done well remaining stable.

“Our financial institutions have done a very good job being reasonable and rational with their loans,” he said.

And the state’s economy has grown over the past five years, Reeves said.

In 2004, he said the general fund budget was $3.6 billion. Now, the overall general fund budget is $5.2 billion.

“The reason for that is not because individuals are paying higher taxes, but we have more taxpayers,” Reeves said.

By the end of the 2008 fiscal year, Reeves said 60,000 more people were working as compared to the end of the 2004 fiscal year.

The per capita income growth is 30 percent, he said.

Reeves said the state still faces challenges such as education and Katrina recovery on the Gulf Coast, but overall Mississippi is doing well.

One thing that should not be relied on to solve financial problems is President Barack Obama’s proposed $850 billion stimulus package, Reeves said.

“There’s pretty significant evidence most recently in the 90s in Japan that the notion that the federal government is going to spin us out of a recession does not work — not long term,” Reeves said.

He said it may give the economy a temporary jolt, but it will fade and the repercussions will remain.

“Eventually, somebody has to pay for it,” Reeves said. “The only way for us to truly recover from this very, very challenging time is to build and restore confidence.”

Confidence needs to be restored with financial institutions, but also with consumers, he said.

“Consumer spending is really, really struggling,” he said.