The Selig Center for Economic Growth at the Terry College of Business at the University of Georgia has released its 2022 Georgia Economic Outlook, and the forecast looks good for the state in the new year.
Jeff Humphreys, director of the Selig Center and primary author of the 2022 Georgia Economic Outlook, spoke on WDUN’s Newsroom on Dec. 14 about the potential economic growth in the new year.
“Nationally, and in Georgia, we’re going to see an increase in consumers spendings,” Humphreys said. “Consumers saved a lot of money during the pandemic, about $2.5 trillion in extra spending. They’re going to be spending some, not all of that, in 2022.”
According to Humphreys, the housing market is also in a great position heading into the new year. He said Georgia’s focus on the production of building materials and floor coverings will play a large role in economic growth in the sector.
“Third, business spending for equipment and software, that has been strong really since the pandemic started. That will continue through 2022,” Humphreys said.
While the previously mentioned portions of the forecast are expected to apply to the entire country, Humphreys said Georgia should have a lot of personal economic gains.
Specifically, Georgia has a large number of economic developments in the works, such as the recently announced Rivian Automotive plant. Construction of the $5 billion plant east of Atlanta is expected to begin in 2022.
“Another factor is just more leverage than most states from the housing boom. Similarly, more leverage than most states from higher vehicle sales,” Humphreys said.
Humphreys said Georgia has also seen above-average population growth through migration from other states, which will also have a positive impact on the economy.
The impacts of the pandemic will still play a role in industries such as live entertainment in 2022, according to Humphreys, but they should still see some recovery.
Click the audio player above to listen to the full interview with Humphreys.
