Chris Clark, the President and CEO of the Georgia Chamber of Commerce, has called on Washington to address issues of inflation and interest rates, emphasizing their negative impact on families, home affordability, small businesses, and the broader economy. Clark’s address highlighted key statistics that affect Georgia’s economy such as a decrease in new home builds, increased monthly housing payments, and high loan rates for both new and used vehicles in Georgia.
Clark stated, “However, at the end of the day, inflation and interest rates are D.C. problems that place an artificial cap on an otherwise healthy economy”. He continued by saying, “The Georgia Chamber, on behalf of the business community in every single county in the state, is taking a stand for small businesses, our employees, and communities by urging Washington lawmakers to address poorly conceived policy in the financial markets, and to pass much-needed tax break extensions”. In his final remarks on this issue he said: “We also call on the Federal Reserve to take immediate action to reduce interest rates and remove the constraints hindering economic growth and prosperity.”
In a press release by the Georgia Chamber of Commerce Clark acknowledged Governor Brian Kemp’s efforts: “Here in Georgia, Governor Brian Kemp suspended the gas tax for months and put money back in the pockets of hardworking taxpayers among other fiscal decisions that have helped ease the burden on Peach State families.”
According to another press release by the same organization it was noted that Georgia is grappling with increased mortgage rates which have led to a 14% national decline in home purchases since October last year. Additionally there has been a 53% increase in housing payments from Q1 2022 to Q1 2023. The state also holds second place nationally for highest loan rates for new vehicles at 7.91% and used vehicles at 12.15%. These factors are impacting transportation accessibility and small business financing according to The Chamber.
A University of Georgia News report indicated that Georgia’s economic trajectory is shifting towards a more moderate growth pattern post-COVID. Projections from the University of Georgia’s Selig Center for Economic Growth suggest a 1.1% GDP increase in 2024. Although this represents a slowdown from the 3% growth seen in 2023, Georgia is still expected to surpass the national GDP growth rate of 0.8% for the same year.
In the same report, Dean of the Terry College of Business Ben Ayers said: “We expect no additional interest rate hikes by the Federal Reserve, but inflation-adjusted interest rates will rise as inflation declines. This ‘passive’ tightening and other stresses in the financial system will slow growth, but the economy will not bust.” Ayers further added: “Our baseline forecast predicts some bank failures, but not a tidal wave of bank failures — which would trigger a mild recession, or much worse.”
The Georgia Chamber of Commerce also highlighted Chris Clark’s background and experience. A native Georgian, Clark currently serves as President and CEO at the Georgia Chamber of Commerce. His previous roles include Commissioner of the Georgia Department of Natural Resources and Deputy Commissioner for the Department of Economic Development. He has held leadership positions at both Fayette County Development Authority and Hawkinsville-Pulaski County Chamber of Commerce and is actively involved in various boards.
