Georgia Southern Q4 2024 Economic Monitor: Savannah bounces back from hurricane woes, slow growth predicted for 2025 

April 28, 2025

The Savannah metro area economy resumed growth momentum in the closing quarter of the year as it bounced back from hurricane-induced weakness in the third quarter, according to Georgia Southern University’s newly released Q4 Economic Monitor. 

“Tourist-related activity recovered strongly, and activity at Georgia Ports Authority facilities closed out the year strongly to support the regional economy,” said Michael Toma, Ph.D., Georgia Southern’s Fuller E. Callaway Professor of Economics.

Toma also pointed out that the business forecasting index weakened due to shorter work weeks and building permit values for single-family homes moderated. The regional labor market remains strong as initial claims from unemployment insurance declined sharply and unemployment remained low.              

Savannah Metro Economy Back on Track

The business index for the Savannah metro economy increased 0.5% (2.1% annualized) in the bounce-back fourth quarter of 2024. Tourism indicators recovered sharply while port activity jumped, and retail sales increased strongly. 

Employment Sector 

Metro Savannah employers added a modest 100 workers during the quarter, raising total employment to 208,100. In the service sector, employment gains were strongest in leisure and hospitality (+800) and logistics (+600), but were partially offset by declines in business and professional services (-200) and wholesale trade (-400).   

In the tourism sector, seasonally adjusted hotel and motel taxes surged 16% from the previous quarter while boardings at the airport swelled by 10.3%. Retail sales recovered from the previous quarter’s stall, rising by 5%. The leisure and hospitality sector provides work for 27,900 employees.

Port activity, as measured by shipping container units handled, increased 4.2% during the closing quarter of the year. By December, containers handled were up by nearly 10% compared to previous-year data. The regional logistics sector added jobs and now employs 19,800 workers.

The goods-producing side of the economy mostly held steady during the quarter at 33,100 workers. Construction employment shed 100 workers to stand at 10,200. Likewise, manufacturing employment held steady at 22,900 workers after a modest upward revision in total employment.

Private-sector wages, after adjusting for inflation, increased 2% to $25.78 from $25.27 per hour during the quarter. Over-the-year gains in wages are 3.8%. Wage gains were partially offset, however, by a continued shortening of the workweek length by 1.5% (27 minutes).  

Regional Labor Market

In the labor market, the monthly number of initial claims for unemployment insurance (UI) plunged 12% to 642 from the hurricane-elevated number of 731 in the previous quarter. Consequently, the regional unemployment rate notably fell to 2.9% from 3.4% in the previous quarter.    

Housing Market

In the housing market, the seasonally adjusted monthly issuance of construction permits for single-family homes increased 12% for the second consecutive quarter, rising to 797 permits from 711. The over-the-year gain increased to 18.5%. The average value for a single-family building permit issued decreased 3.6%, however, to $252,200 from $261,700. The building permit value does not include the cost of land.

The fourth-quarter decline in the forecasting index is likely to continue in 2025. Regional indicators of current economic activity are expected to slow in the first half of 2025. Restructuring of international trade flows will presumably be reflected in port activity, logistics employment and manufacturing employment in the latter half of 2025.

In the short run, growth in the Savannah metro economy is now expected to slow in 2025 and fall below its long-term trend. Whether this results in economic contraction in the Savannah metro economy will depend on the as-yet unknown effects of evolving U.S. trade policy.

A Note from the Analyst

The Economic Monitor is available by email and at Georgia Southern’s Center for Business Analytics and Economic Research’s website. To receive the Monitor by email send a ‘subscribe’ message to CBAER@georgiasouthern.edu.

About the Indicators

The Economic Monitor provides a continuously updated quarterly snapshot of the Savannah Metropolitan Statistical Area economy, including Bryan, Chatham and Effingham counties in Georgia. The coincident index measures the current economic heartbeat of the region. The leading index is designed to provide a short-term forecast of the region’s economic activity in the upcoming six to nine months.