News Summary
Savannah, Georgia, is witnessing signs of economic slowdown as 2025 progresses. Georgia Southern University’s Economic Monitors indicate fluctuating employment and a downturn in retail sales, while tourism metrics show mixed results. The region lost approximately 1,000 jobs in the first half of the year, primarily affecting logistics and professional services. Though some sectors displayed modest growth, overall forecasts suggest continued slow growth influenced by national uncertainties amidst a challenging local economic landscape.
Savannah, Georgia is experiencing signs of slowing economic growth as 2025 progresses. According to an analysis by Georgia Southern University’s Economic Monitors for the first two quarters, the Savannah metro economy has shown considerable changes, impacting both employment and various sectors within the local economy.
The business index in Savannah recorded a modest increase of 0.3% (annualized at 1.1%) in the first quarter, but this trend inverted in the second quarter with a decrease of 0.6% (annualized at -2.2%). Employment faced challenges as the region lost a total of 1,000 jobs over the first half of the year, with total employment reported at 201,100 by the end of Q2. The service sector did experience some growth, particularly in leisure and hospitality, education/health, and local government, yet notable losses occurred in professional and business services, as well as transportation and utilities.
The retail landscape in Savannah also saw a downturn, with sales declining by 2.2% in Q1 and 0.4% in Q2. Despite this, retail sales remained 2.1% higher compared to the same period last year. Tourism metrics indicated a drop-off in the first quarter, with hotel and motel taxes decreasing by 0.5% and airport boardings falling by 5.7%. The second quarter offered a mixed picture as airport boardings increased by 3% and auto rentals saw a rise of 5.6%. However, hotel and motel tax collections fell by 4.5%.
Port activity, an essential component of Savannah’s economy, reflected a decline in shipping container unit activity. In Q1, container units decreased by 1.2% due to ongoing international trade turbulence. A smaller decline of 0.6% was noted in Q2, but the total container volume was still 9% higher than figures from the previous year. The logistics sector faced significant setbacks, losing a total of 800 jobs over the two quarters.
In real estate, single-family building permits showed some initial progress with a rise of 1% in Q1 and a substantial year-over-year increase of 20%. However, the value of building permits dropped by 5.3%, and in Q2, permit issuance fell by 12.6% and values decreased by 3.5%, now standing at 9% below the previous year’s figures.
Wage trends reflected a positive growth pattern, with inflation-adjusted private-sector wages increasing by 3.5% to $28.76 per hour in Q1 and a further rise of 2.9% to $29.61 in Q2. The unemployment rate saw fluctuations, dipping from 2.9% in Q4 of 2024 to 3.2% in Q1 before adjusting back to 2.9% in Q2. Initial unemployment insurance claims increased by 3.7% in Q1 but saw a decrease of 8.2% in Q2.
Economic forecasts anticipate continued slow growth in Savannah influenced heavily by national economic uncertainties and potential price impacts arising from emerging tariffs. Georgia’s overall economic growth is projected to reach 2.4%, slightly lower than previous years but ahead of long-term averages. Conversely, the U.S. economy is expected to grow at a slower pace of 1.6%, compared to the 2.5% growth experienced previously.
Amidst these economic challenges, Savannah State University continues to have a notable impact on the regional economy, contributing $164.4 million in the fiscal year 2024, a 9.3% increase from the prior year. Each job at Savannah State University supports two additional jobs in the community. The university’s economic contribution includes $65.6 million in student spending, $60.8 million in personnel services, and $37.8 million in operational expenses, translating into additional economic activity within the local community. Beyond financial contributions, Savannah State fosters community engagement and innovation through cultural programs, research, and public service initiatives.
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Additional Resources
- Grice Connect: Georgia Southern’s Economic Monitor
- Savannah Business Journal: Economic Monitor Report
- Savannah Now: Hyundai’s Impact on Savannah Economy
- Bloomberg: Hyundai Savannah Metaplant
- WTOC: Savannah State’s Economic Contribution
- Wikipedia: Economy of Savannah, Georgia
- Google Search: Savannah Georgia Economic Outlook
- Google Scholar: Savannah Economic Trends
- Encyclopedia Britannica: Savannah
- Google News: Savannah Georgia Economy
Author: STAFF HERE SAVANNAH WRITER
SAVANNAH STAFF WRITER The SAVANNAH STAFF WRITER represents the experienced team at HERESavannah.com, your go-to source for actionable local news and information in Savannah, Chatham County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Savannah Music Festival, St. Patrick's Day Parade, and Savannah Jazz Festival. Our coverage extends to key organizations like the Savannah Area Chamber of Commerce and United Way of the Coastal Empire, plus leading businesses in aerospace, education, and logistics that power the local economy such as Gulfstream Aerospace, Savannah College of Art and Design, and Colonial Group. As part of the broader HERE network, including HEREAtlanta.com and HEREAugusta.com, we provide comprehensive, credible insights into Georgia's dynamic landscape.
