State, Local Economic Growth to Remain Slow Through 2013, GSU Economist Says
It’s going to be a rough ride, but Georgia State University economist Rajeev Dhawan said Wednesday we just have to make it through 2013.
Why a year?
Two words: "fiscal cliff."
“So the fiscal cliff has done its damage in terms of [CEO] confidence," Dhawan said. "If the businesses are not confident, they’re not about to take the risk of hiring people or expanding.”
Dhawan predicts Congress will come up with a budget solution and CEO confidence will rebound. But the economy will take some time to catch up.
Meanwhile, economic slowdowns in Europe and China are also contributing to tepid growth prospects both in the US and here in Georgia.
Exports were the state’s bright spot through the recession, but their growth has slowed to about a tenth of what it was last year.
“So when do we get back to the old normal? In Atlanta, we get there a little bit faster than Georgia,” Dhawan said.
That’s because about 70% of the state’s new jobs in 2014 will come from the Atlanta region.
Even then, Dhawan said construction jobs won't have much of a rebate--despite exponential growth in multi-family housing.
Hospitality will see only small growth.
Healthcare, Dhawan said, will remain the bright spot in the economy