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Georgia and Atlanta’s economy are looking bright!
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Rajeev Dhawan, of the Economic Forecasting Center at Georgia State University's J. Mack Robinson College of Business, says that sunny times are ahead for Georgia and Atlanta's economy!
We had a slow start in 2014, caused to January's "snowpocalypse," but according to the recent report published by the Economic Forecasting Center, Georgia will add 20,000 jobs per quarter for the rest of the year!
Dhawan writes, "When you look at the positives and the negatives you get numbers that seem slightly off-kilter for state job growth. In the first three months Georgia added only 6,000-odd jobs, due to the weather effect. All told, my forecast calls for 65,100 new jobs in the state by year end.”
Another plus side, is retail and hospitalitiy generated 40% of new jobs in Georgia last year, which is parallel with nation trends. Dhawan is concerned that if oil prices remain high and glocal issues continute to impact the catalyst sectors, these two could suffer.
Dhawan also predicts "signifigant growth" in construction due to the recent announcements of apartment building intown and the new Falcons stadium.
Dhawan also said, “Approval of the Savannah dredging project and expected lower energy prices makes me bullish on manufacturing-related employment in the coming years.”
Metro Atlanta home prices are also increasing into the double digits from 2012-2013, with permits increasting by 70%. Dhawan expects home price growth to level as potential purchaseers take a wait-and-see approach with mortgage rates. In a statement, Dhawan said, “This is no surprise, given millennials’ preference to live in town near their jobs,” a trend he anticipates will continue.”
Here are some highlights from the Economic Forecasting Center's Report for Georgia and Atlanta:
- · In 2014, growth will slow with the state adding 65,100 jobs, (14,800 premium jobs). In 2015, growth picks up as Georgia adds 89,200 jobs (18,400 premium jobs). In 2016, growth will be even better with 100,100 jobs added (20,700 premium jobs).
- · State unemployment averaged 8.2 percent in 2013. It will drop further to 6.9 percent in 2014, 6.3 percent in 2015, fall from 6 percent to 5.7 percent in 2016.
- · Nominal personal income rose 2.7 percent in 2013 and will increase 3.3 percent in 2014. Income will rise by a strong 5.3 percent rate in 2015 and an even better 5.6 percent in 2016.
- · Atlanta added 59,800 jobs in 2013. Expect this to moderate in 2014 as Atlanta will add 46,800 jobs, including 10,800 premium jobs. Employment will grow strongly in calendar year 2015, gaining 61,300 jobs (14,300 premium), and by 67,800 jobs (15,800 premium) in 2016.
- · Atlanta’s housing permits numbered 24,065 units in 2013, due to an 85 percent increase in multifamily permits. In 2014, permitting activity levels will be maintained at about 23,103, a decrease of 4 percent. Permit activity will rise to 23,974 in 2015 and then jump sharply to 27,609 in 2016.