Recession concerns voiced at Business Outlook

Published 1:00 pm Thursday, February 2, 2023

VALDOSTA — Local, state and national economists recently shared their predictions about economic growth and a possible recession in 2023.

Valdosta-Lowndes Chamber of Commerce hosted its 13th Annual Business Outlook Breakfast, sponsored by Citizens Community Bank at Wiregrass Georgia Technical College.

Tim Jones, president of Citizens Community Bank, welcomed breakfast attendees.

Jones said the business outlook breakfast is a staple event for business owners to plan and develop their strategic plans.

Event speakers included Dr. Cynthia R. Tori of Valdosta State University’s Harley Langdale Jr. College of Business, Dr. Jeffrey Humphreys of University of Georgia’s Terry College of Business and Dr. Roger Tutterow of Kennesaw State University’s Cole’s College of Business.

Tori shared information on the economic outlook of the local community, starting with COVID-19 pandemic impact and detailing information on the Valdosta labor force.

“In Valdosta, many of our labor force is tied to government force versus the agriculture labor force, which makes us feel more secure in the recession,” Tori said.

She predicts South Georgia will see continued growth in 2023, as businesses and individuals continue to migrate to the area and integrations of new technology are believed to help with that growth.

Humphreys followed with information detailing Georgia’s economic climate, predicting 75% probability of recession.

He predicted the three main reasons for recession to be federal reserve actions, energy price shocks and negative wealth effects.

“Georgia’s recession will barely qualify as a recession,” Humphreys said. “The recession will be mild and short because of our strong labor market.”

Finally, Tutterow focused on the effects of the pandemic 2020-21 and how the data supports business assessments in planning for 2023 recession and inflation.

“We have to think a recession in 2023 is most likely but all recessions are not the same,” Tutterow said. “It is possible to have a recession that will allow us to hit reset and position ourselves for a more sustainable balance.”

Tutterow urged business leaders to benchmark their business performance 24 months, 12 months and six months.

“Locally, we are doing better than national numbers — college towns and military towns hold up the best in recessions,” he said.