News Summary
The Savannah metro area’s economy has rebounded in the fourth quarter of 2024, posting a growth of 0.5%, translating to an annualized rate of 2.1%. Contributing factors include a rise in tourism and strong port activity, alongside a decrease in unemployment claims. The total employment has reached 208,100, with notable job gains in hospitality and logistics. While retail sales surged by 5% and hotel revenues increased by 16%, challenges in other sectors like construction remain. The outlook for 2025 suggests cautious growth amid external factors.
Savannah – The Savannah metro area’s economy has shown significant growth in the fourth quarter of 2024, rebounding from a downturn in the previous quarter attributed to hurricane impacts. According to the Q4 Economic Monitor released by Georgia Southern University, the business index for the Savannah metro economy increased by 0.5%, translating to an annualized growth rate of 2.1%.
This economic recovery is largely credited to robust tourist-related activities and the operations of the Georgia Ports Authority. The region’s labor market has also exhibited strength, evidenced by a 12% decrease in initial unemployment insurance claims compared to the third quarter. Consequently, the unemployment rate fell to 2.9%, a decline from 3.4% in Q3.
In terms of employment, the Savannah metro area added 100 jobs in Q4, bringing total employment to 208,100 workers. The greatest employment gains were witnessed in the leisure and hospitality sector, which saw an increase of 800 jobs, as well as logistics, which added 600 jobs. However, not all sectors saw growth; business and professional services experienced a loss of 200 jobs, while wholesale trade saw a reduction of 400 jobs.
Additionally, retail sales in the region surged 5% compared to the previous quarter, showcasing a notable recovery following previous stagnation. The hospitality industry also displayed strong performance, with seasonally adjusted hotel and motel tax revenues increasing by 16%. Furthermore, airport boardings climbed by 10.3% during this period, indicating a thriving tourism sector.
Port activity has played an essential role in this economic resurgence as well, with an increase of 4.2% in overall port operations and nearly 10% more containers handled year-over-year. However, the construction sector faced a slight setback, reporting a loss of 100 jobs, which brought total construction employment down to 10,200. In contrast, the average value of single-family building permits fell by 3.6% to $252,200, although the total number of permits issued monthly increased by 12% to reach 797 permits.
Looking ahead, the Economic Monitor forecasts that the Savannah metro area may experience slower economic growth in 2025, primarily due to potential interruptions arising from shifting U.S. trade policies. Nonetheless, the manufacturing sector in Savannah has demonstrated remarkable expansion, with a total of 4,600 jobs added since 2022, significantly attributed to the presence of major companies like Hyundai and Gulfstream.
In summary, while the Savannah metro economy has rebounded from previous disruptions, emerging challenges could affect future growth. Current indicators, however, suggest that the Savannah metro economy may continue to outperform the broader state and national economies in 2025, providing a cautiously optimistic outlook for residents and businesses alike.
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Additional Resources
- Savannah Now: Savannah Economy Bolstered by Hyundai
- Wikipedia: Economy of Georgia (U.S. state)
- Grice Connect: Georgia Southern Q3 2024 Economic Monitor
- Google Search: Savannah economic growth
- New York Times: Port Strike and Savannah Economy
- Google Scholar: Savannah economy trends
- Savannah Business Journal: Healthy Regional Growth
- Encyclopedia Britannica: Economy
