It’s certainly been a roller coaster of a year. Politics was bound to be a huge news story of the year but Covid-19 came in like the Kool-Aid Man to grab headlines and the minds of Americans. Accompanying the pandemic was the economic fallout that resulted in Q2 being the largest drop in growth in U.S. history. Q3 growth, reported by the Commerce Department on Thursday, has followed it up by growing at the fastest pace ever.
Third-quarter gross domestic product (GDP) grew at a 33% pace according to the Bureau of Economic Analysis. The BEA noted in its statement that increases in personal consumption expenditures, private inventory investment, exports, nonresidential fixed investment, and residential fixed investment all contributed to the growth in real GDP.
Georgia appears to be one of the states coming back the fastest.
CBS News reported that Georgia is “97% recovered,” according to the Director of the Selig Center for Economic Growth at the University of Georgia Jeffrey Humphreys. “We’ve had a very strong bounce,” said Humphreys. He pointed to the state’s large warehousing and logistics industries as key to the recovery rather than the earlier end to the lockdown which opened up the state up before many others. As the virus exploded online ordering and shipping, Georgia benefitted.
After an unemployment rate of 12% earlier this year, that number is already back down to 6.% and weekly unemployment claims have dropped from 400,000 to just over 40,000. Governor Brian Kemp touted the quarterly growth as he and the Department of Economic Development announced more than 10,000 jobs created by economic development projects, generating more than $3.7 billion in new investments.
“We’re incredibly proud to have announced this unprecedented number of jobs for hardworking Georgians over the past three months,” said Governor Kemp. “As the Top State for Business for seven consecutive years, we continue to shatter our previous numbers, and most importantly, create opportunities in every region of the Peach State.”
With the collapse of much of the restaurant and live entertainment industries earlier this year, and concern about how many of these businesses will return to their full pre-pandemic levels, drumming up new business has taken on a new meaning for the economic development office.
“I want to thank my Global Commerce team for their work in helping businesses grow in Georgia. Our state has not only continued to attract companies from the U.S., but also globally – which underlines the importance of our 12 international offices,” said GDEcD Commissioner Pat Wilson. “The support of Governor Kemp, the Georgia General Assembly, and our economic development partners enables us to continue this success story and strengthen relationships with the business community in Georgia.”
Amazingly, despite the pandemic, jobs and investment numbers from the economic development office are up year over year from 2019. Between March 1 and September 30, 176 new economic development projects were completed, creating nearly 20,000 new jobs and $6.5 billion in investment.
