A report from Moody’s Economy says 22 U.S. cities that were recovering could be sliding back into recession, and two of those cities are in Georgia.
It’s called a double-dip recession. Economists say it’s a recession, followed by a short recovery, with a return to recession. It’s when growth stagnates or declines. Moody’s says Macon and Athens are at greater risk for a double-dip.
Economic forecaster Jeff Humphrey’s with UGA’s Terry College of Business says the chances of this happening in Georgia are one in three, and overall the state is under-performing.
“The reason why we’re not doing as well as the rest of the nation, why a number of our cities are more vulnerable to a double-dip has everything to do with basically real estate development. Too much of our growth was based on real estate development.”
Moody’s economists say they chose Macon and Athens due to their recent employment, home sales, housing starts and industrial production numbers.