Economists say Georgia already in a recession - WALB.com, Albany News, Weather, Sports

Economists say Georgia already in a recession

Updated:

January 14, 2008

Albany--Nationwide, economists say a recession is on the horizon.  But if you talk to some economists at the University of Georgia, they'll tell you that our state is already in one.

According to economists at UGA's business school, the state's housing, manufacturing, and agriculture sector are already in a recession.

As far as the job market goes, the state is expected to create 44,000 new jobs in 2008, however, that's actually down from Georgia's anticipated 1.3 percent growth for this year.

Economists also say economic growth in Georgia will slow in '08 and that there are several factors contributing to the state's recession.

The main one being the housing market Economists say the state's housing recession won't end until late 2008 or possibly early 2009.

Nationwide, the talk of a recession has forced many people to really limit their spending.

"I couldn't afford anything for Christmas this year," says consumer, Lisa Haythe.

"The reasons for a recession have been accumulating for some time primarily because the labor market has been deteriorating," says Ed McKelvey, senior economist for Goldman Sachs.

State economists say Georgia's drought has helped to fuel the state's recession. A UGA study recently estimated the state's losses in production agriculture to be around $800 million.

In Atlanta, the drought has already caused recessions in urban agriculture, landscaping, and garden centers.

In response to the recession, Governor Sonny Perdue says Georgia is performing "above average" compared to other states.

Georgia's economic forecast was prepared by the Terry College's Selig Center for Economic Growth at UGA.

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