The coming year will extend the long economic expansion in Georgia, according to the annual University of Georgia forecast to be issued today.
The economy will grow faster than the national average and add roughly 93,000 jobs, according to the report, the first of nine such presentations around the state to be delivered by Benjamin C. Ayers, dean of UGA's Terry College of Business.
“Many of the same forces that contributed specifically to Georgia’s growth in the past two years will be even stronger in 2017,” Ayers said, in remarks prepared for an expected audience of about 700 business people, government officials and members of various chambers of commerce.
Ayers chalked up the rosy prospects to projects already in the economic development pipeline, as well as a continued recovery in the housing market.
Moreover, he said: “Georgia’s manufacturers will continue to do better than U.S. manufacturers.”
And finally, the state will benefit from continued population growth, attracting an inflow of new residents, as well as home-grown growth.
The forecast was prepared by the Selig Center for Economic Growth, which is part of UGA.
The state’s economy will expand 3.2 percent during the year, faster than the national pace of 2.6 percent, Ayers said. Non-farm employment will climb 2.1 percent, he said, which – with 4.4 million jobs now, translates to 92,610 new positions.
Among the challenges to growth are a strengthening dollar, which makes U.S. products more expensive overseas, along with higher interest rates.
Ayers pegged the chances of a recession during 2017 at 35 percent – up from the past several years.
There’s also the matter of a new president, new policies and new appointees.
“With a new administration in Washington, there will be more economic policy uncertainty,” he said. “That will put some business decisions on hold. It may even delay some decisions to expand, or to hire.”
“But it also brings an opportunity to implement policies that will improve economic growth through tax reform, regulatory relief, and spending on productivity-enhancing infrastructure,” Ayers said. “If leaders get it right, the country will benefit substantially.”
