News Summary
The Savannah metro area has experienced economic recovery in Q4 2024, according to Georgia Southern University’s Economic Monitor. Key indicators show a 0.5% business index increase, falling unemployment claims, and a resurgence in the tourism sector with a 16% rise in hotel tax collections. Employment grew by 100 workers, although some sectors faced job losses. Port activity and retail sales also improved. Despite this recovery, forecasts suggest potential economic slowdown in 2025 due to changing international trade dynamics.
Savannah – The economy of the Savannah metro area has shown signs of recovery in the fourth quarter of 2024 after experiencing a decline due to the impacts of hurricanes in the previous quarter. According to the Q4 Economic Monitor released by Georgia Southern University, there has been notable growth in tourist-related activities and a strong performance from facilities operated by the Georgia Ports Authority.
Key economic indicators reflect this rebound, with the business index for the Savannah metro economy increasing by 0.5%, which translates to a 2.1% annualized rate in Q4 2024. Alongside this growth, initial claims for unemployment insurance have dropped significantly, resulting in a decrease in the unemployment rate to 2.9%, down from 3.4% in the third quarter.
Tourism and Employment Recovery
The tourism sector has demonstrated a substantial recovery, as evidenced by a 16% increase in hotel and motel tax collections compared to the previous quarter. Furthermore, airport boardings saw a rise of 10.3% in Q4, reflecting a positive trend in travel and tourism activities.
The labor market in the metro area also remained robust, with total employment increasing by 100 workers, culminating in a total of 208,100 employed individuals. The leisure and hospitality sector, in particular, experienced significant job growth, adding 800 jobs, while the logistics sector contributed an additional 600 jobs to the local economy. However, some sectors faced employment declines—business and professional services lost 200 jobs, and wholesale trade saw a reduction of 400 jobs.
Port Activity and Retail Sales
Port activity has also picked up, with the Savannah port handling 4.2% more shipping container units in Q4 than in the previous quarter. Compared to the previous year, port activity has increased by nearly 10%. The logistics sector now employs 19,800 workers, underlining its importance in the regional economy.
Retail sales have shown a positive turnaround as well, with a 5% increase observed compared to the third quarter. This resurgence suggests a strengthening consumer confidence and spending within the metro area.
Construction and Wage Trends
While the total employment figures are on the rise, the construction sector has seen a slight downturn, losing 100 workers to a total of 10,200 workers. In contrast, manufacturing employment held steady at 22,900. Monthly construction permits for single-family homes rose by 12%, totaling 797 permits issued in Q4, although the average value of these permits declined by 3.6% to $252,200.
On the wage front, private-sector wages have increased by 2% to reach an average of $25.78 per hour, showing a 3.8% annual gain despite a reduction in workweek length.
Outlook for 2025
Looking ahead, the business forecasting index for the Savannah metro area indicates a continued decline into 2025, suggesting a potential slowdown in economic activity during the first half of the year. Furthermore, the anticipated restructuring of international trade flows may significantly impact future operations in the port, logistics, and manufacturing sectors.
The data from the Q4 Economic Monitor paints a picture of a region on the mend, emerging from recent difficulties but facing new challenges that could shape its economic landscape in the near future.
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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.
