Slow but steady growth predicted for Georgia, Albany’s 2025 economy

ALBANY – Georgia’s economy is on track for steady growth in 2025, albeit a bit of a slow-down from 2024.

The state is poised for robust job growth, significant population growth as well as diverse industries and labor markets that will see it outperform the country. This emphasizes Georgia’s position as a good place to do business. 

For communities like Albany, these favorable trends bode well for continued growth at a more moderate pace.

This was the gist of the information provided at the University of Georgia’s 42nd annual Georgia Economic Outlook discussion, which was held at Albany State University’s West Campus, Wednesday.

Benjamin Ayers, dean of UGA’s Terry College of Business, gave the statewide economic outlook based on analyses from the UGA Selig Center of Economic Growth.

“2025 will be a good year in the state of Georgia,” Ayers said. 

Sarah Brinson, dean of the Darton College of Health Professions at ASU, presented findings for Albany’s economic outlook.

Local economic development efforts, including major manufacturing expansions and investments that began taking shape post-COVID-19 pandemic, will continue to fuel job creation and economic momentum in the area. 

“It often takes several years to fully build out an economic development project, and even more to fully integrate the project into the economic fabric of the community,” Brinson read from the report. “Only then are the economic impacts, including multiplier effects of economic development projects, fully realized.”

However, the pace of growth is expected to slow as the momentum from projects announced in previous years wanes. 

Notably, Albany’s economy benefits from its diversified base, with industries like agriculture, health care, and government providing stability despite national economic challenges.

Albany’s industries put up a protective shield in the face of expected nationwide issues.

“Albany’s diversified economy tends to dampen the ups and downs of the business cycle,” Brinson read.

Albany’s economy is more dependent on government, education, health care, retail, wholesale, trade and agriculture, which are not very cyclical industries. Albany is focused on the production of nondurable goods and consumer staples, which will continue to be in demand whether the economy grows or shrinks.

Albany’s economy also is not overly dependent on exports, meaning it won’t be exposed to trade wars or global economic slowdowns that are expected in 2025. 

“Although we expect that Albany will experience slower growth, the area’s economy has a lower economic risk profile than most,” Brinson read. “That’s a positive for businesses and households and makes Albany a good place to grow a business and raise a family.”

The area also continues to strengthen its position as a health care hub, with Phoebe Putney Health System driving growth in the sector as well as a regional transportation hub with the help of the Southwest Georgia Regional Airport, which saw expansion projects in 2024.

Despite these strengths, the Albany Metropolitan Statistical Area’s population continues to decline, a problem that impacts peer rural communities throughout the state and country. Outmigration remains a challenge, most likely fueled by the result of too few high-paying tech jobs, drawing the most educated residents out of the city in search of employment. 

Albany’s MSA has very few high-paying tech jobs – 1.8% of the total employment vs. the U.S.’s 5.5%.

One light at the end of the tunnel for this fact could be an increased demand for high-tech development in the area due to tech initiatives at Albany’s Marine Corps Logistics Base as it continues to grow in leadership in energy, security and innovation. This demand would increase over time.

Albany’s housing market is another plus. While home prices are 48% above their pre-pandemic peak, this compares to Georgia’s home prices rising by 67%. In 2025, housing activity in Albany is expected to remain stable. Home prices and new home construction will remain close to 2024 levels. 

Barbara Rivera Holmes, the president and CEO of the Albany Area Chamber of Commerce, said Albany continues to be synonymous with its large-scale manufacturers like Procter & Gamble, Molson Coors and Mars.

“Those names are recognizable anywhere in the world, and we’re proud that they are here in Albany,” she said.

Holmes encouraged people to walk away from the discussion keeping in mind both Albany’s challenges and the areas where it shines. 

“We heard some pressures … but we also heard a lot of good things, and I want us to walk away today knowing what the pressures are, but also knowing what is advancing our economy,” she said.