Georgia’s economy continued to recover in the second quarter of 2021, although its growth rate slowed compared to the first quarter of the year as the state grew slower than the nation between April through June.
The state’s real (inflation-adjusted) gross domestic product
(GDP) rose by 6.0% in the second quarter of the year, following a 6.9% increase
in the first quarter of 2021 (percentage increases annualized).
By comparison, the national economy grew by 6.7% in the
second quarter after rising by 6.3% in the first quarter (annualized).
With the second quarter, Georgia’s economy totaled $563,805,400,000,
raising it above pre-Covid levels for the first time even as nonfarm employment
in the state continued to trail its pre-Covid level by 85,000 jobs compared to
the second quarter of 2019.
Georgia economy gains lower than the nation
Adjusted for inflation, Georgia’s economy grew by a compound
rate of 11.4% between second quarter of 2020 and the second quarter of 2021,
less than the 12.2% growth in the national economy.
Private industry in the state increased by 12.4% compared to
13.6% for the U.S. with manufacturing seeing an increase of 15.6% in Georgia compared
to 18.4% nationwide.
Real estate and rental and leasing, the largest contributor
to Georgia’s economy and accounting for 14% of the state’s GDP, rose over the
year a relatively sluggish 3.5% compared to the nation’s 4.3% increase.
The information sector, which represents 11.2% of the state’s
economy, increased faster than the U.S. over the year, rising by 21.1% compared
to 15.9% nationally.
Agriculture and forestry grew by a sizeable 14.4% compared to
2.9% for the U.S., but the industry remained a less than 1% contributor to the
state’s overall GDP and is actually less of a contributor to the state than to
the national economy.
A notable lagging industry was transportation and
warehousing. The sector’s GDP rose by 6.5% in Georgia over the year compared to
14.8% nationally. Increases in freight traffic in the state could not offset
the negative effects of a slowdown in passenger airline business and reflects the
importance of passenger aircraft transportation as a contributor to the state’s
overall economy.
Accommodation and food services business, although showing
strong growth, still fell short of the national averages as the industry saw a
58.3% rise in Georgia compared to 69.2% increase nationally.
A faster growing economy offers the prospect of increased
job opportunities, so Georgia’s rate of GDP growth is an important indicator
for its labor market.