News Summary
The Savannah region, covering Chatham, Bryan, and Effingham counties, has recorded a 0.6% decline in economic activity, with 500 job losses mainly in the service and logistics sectors. Analysts attribute this slowdown to consumer uncertainty and tariff impacts, particularly following President Trump’s recent tariff policies. Despite a slight increase in private-sector wages, forecasts predict continued economic stagnation influenced by ongoing volatility and the upcoming closure of local mills, signaling challenges for the region’s job market.
Savannah – The Savannah region’s economic growth has stalled, according to the latest Coastal Empire Economic Monitor produced by Georgia Southern University. The regional business index, which encompasses Chatham, Bryan, and Effingham counties, recorded a 0.6% decline in the second quarter of 2025, marking a significant slowdown in economic activity.
During the second quarter, the region experienced a total job loss of 500 positions. This downturn was primarily driven by the service sector, which lost 400 jobs, followed by the logistics sector with 300 job losses, and 100 jobs lost in the goods-producing sector. However, there were modest gains of 300 jobs in the retail and education/health sectors, which offered some compensatory balance to the losses.
Consumer spending appears to be declining alongside job losses. Both imports at the Georgia Ports Authority and consumer activity dropped in June and July, signaling a downturn in regional economic momentum. Uncertainty among consumers and businesses has been reported to be a significant factor in the reduced economic activity, as households and companies alike adopt a wait-and-see approach amidst prevailing economic fluctuations.
The economic softening has been described by analysts as a “braking effect,” in contrast to the sharp, sudden declines experienced during the Great Recession. Notably, the impact of President Trump’s tariff policies and general consumer uncertainty are cited as major contributors to the region’s economic slowdown. Specific tariffs, referred to as “Liberation Day,” were implemented in April 2025, and their effects have begun to show in the Q2 economic data.
In addition to the job losses and declining consumer spending, the local hotel industry has also seen a downturn, with hotel-motel tax revenues decreasing by 4.5% in Q2. The region’s tourism metrics were mixed; while there was a 3% increase in airport boardings and a 5.6% rise in auto rentals, hotel/motel tax collections continued to decline during the same period.
The job market is expected to be affected significantly in the upcoming quarter as well, with the closure of International Paper’s Savannah mill impacting 800 jobs and another 300 jobs affected at the Riceboro mill. The economic monitor released earlier in the year showed slowing growth in Q1, but the subsequent Q2 data flagged an official decline—an indication of the region’s changing economic landscape.
Throughout the first half of 2025, there was a combined job loss of 1,000 positions, reflecting a broader trend of instability. The logistics sector has been particularly hard-hit, calculating a total loss of 800 jobs across the first two quarters. Additionally, single-family building permits saw a 1% increase in Q1 but dropped significantly by 12.6% in Q2, coupled with a 3.5% drop in permit values.
On a slightly positive note, private-sector wages did see an increase, rising by 3.5% to reach $28.76 per hour in Q1 and then continuing to climb to $29.61 per hour in Q2. Meanwhile, the unemployment rate fluctuated, climbing to 3.2% in Q1 but then dropping back to 2.9% in Q2.
Looking ahead, economists predict that economic growth in the Savannah metro area may continue to remain below long-term trends, largely influenced by ongoing tariff-related price increases and general volatility in the economy. Forecasts suggest stable but moderate slowing for the remainder of the year, along with speculation that Q4 will remain uncertain, characterized by below-average economic growth.
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Additional Resources
- Savannah Now: Savannah Area Economy Sees Dip in Q2
- Grice Connect: Georgia Southern’s Economic Monitor
- WTOC: Savannah Economic Development Authority Responds
- WSAV: Experts Predict Exponential Growth
- Hyundai: Metaplant America Grand Opening
- Wikipedia: Economy of Georgia
- Google Search: Savannah Economic News
- Google Scholar: Savannah Economy
- Encyclopedia Britannica: Savannah, Georgia
- Google News: Savannah Economic Trends
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.
