GSU Robinson’s Economic Forecasting Center Predicts Changes in Atlanta Economy

Rajeev Dhawan, Director of the Economic Forecasting Center at the Georgia State University – J. Mack Robinson College of Business, uses his experience in forecasting to understand and predict the economy in Atlanta.

Released on August 24th, Dhawan’s “Forecast of the Nation” attempts to explain the recent slowing down of Atlanta’s economic growth, and make predictions about better days to come.

The recent report reflects a stalled gross domestic product (GDP) in Atlanta, mostly due to a severe lack of investment, particularly in technology. “In the current expansion,” Dhawan wrote in his report, “investment growth has been a paltry 4.1 percent, compared to 10.6 percent in the ‘90’s.”

Primarily Dhawan explains that the length this pause in economic growth is a result of political uncertainty, with hopes that the end of this election cycle in November should mark its end. “Like after the last presidential election, we have a good chance of bouncing back when this one is over,” he said.

Not only are political matters in the United States influencing Atlanta’s market, but matters abroad as well: the United Kingdom’s decision to leave the European Union this summer has also impacted the U.S. stock market.

However, not all Brexit news is bad news for the Peach State, says Dhawan. The corporate sector in Georgia is actually benefitting from the international investors flight to safety, contributing to 16,500 new jobs in the corporate sector for the first half of 2016.

Economic growth in Georgia may be an uphill battle, but Dhawan nonetheless offers some things to look forward to: the Economic Forecasting Center predicts Georgia will gain 98,000 new jobs in 2016, Atlanta specifically will ad 64,700 jobs, and nominal personal increase will increase by 4.9 percent.

regions: Atlanta

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