A Georgia economist predicts the state’s economy will stall this year and growth will remain slow next year.
Georgia State University’s Economic Forecasting Center held a conference on the economy on Wednesday.
Center Director Rajeev Dhawan says Georgia exports to Europe have slowed significantly in the last five months, reversing a trend in annual growth. He says
“Instead of growing at 20 percent, we’re only growing at 3. It may turn out to be 5, may turn out to be zero. But it’s not going to be 20. That’s one area that was growing, helping the Savannah economy, all the export-dependant stuff, logistics and everything. This is slowing.”
Dhawan also says the pace of corporate job growth in Georgia has started to moderate due to national political dysfunction.
Dhawan says healthcare jobs will increase, but other sectors won’t see much hiring.
“So this is going to be an economy where some sectors are going to be the laggards. Some sectors are going to be forward. You do the average, the number is not going to be very good.” he says.
He predicts Georgia will only see a 1 percent increase in jobs this year, and a 1.6 percent increase in jobs next year.
He also says rising oil prices are hurting the state's economy.
Until Congress figures out how to cut its budget without going over the so-called “fiscal cliff” of proposed 20 percent cuts across the board, Dhawan says the nation’s and the state’s economies will remain in limbo.