Unemployment may rise and home sales may fall, but Atlanta’s economy is poised for “quasi-growth” the next two years, the Economic Forecasting Center at Georgia State University predicted Wednesday, AJC staffer Dan Chapman reports.
Fears of a double-dip recession and deflation are unfounded “provided we don’t have a steep drop in home values,” said center director Rajeev Dhawan, Chapman writes.
“What happens to home prices over the next few months will be critical to the confidence of consumers,” Dhawan said. “It will affect their spending decisions, especially for big-ticket items. This, in turn, will send a signal to CEOs about whether or not to ramp up their investment and hiring plans.”
Dhawan was surprisingly upbeat in his report, Chapman writes. Georgia will add a measly 5,000 jobs this year, but 60,300 next year and 78,300 in 2012. The statewide unemployment rate, currently at 9.9 percent, will remain above 9 percent, Dhawan said.
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