3-01-2026 9:22pm

Georgia's Own Senator Warnock Grills Secretary Bessent on the Trump Economy

S RENEE GREENE Editor

WARNOCK'S TRANSCRIPT

In February 2026, Georgia's economy is experiencing a transition to slower growth, with GDP expansion slowing to roughly 1.5% and increased risks of a recession, matching a similar nationwide slowdown. While the labor market is softening and unemployment is expected to rise to 4.1%, the state continues to see strength in data center investments and specialized manufacturing.

UGA Today - (February 2026):

Growth Outlook: Georgia's economic growth is projected to slow to around 1.5%, matching the national pace, with a "sobering" outlook that keeps recession risks near 50%.
Labor Market: Unemployment is forecast to rise to 4.1%, a 0.5 percentage point increase, reflecting a softer labor market.
Sector Highlights:
- Technology: Georgia is performing strongly in attracting data center and artificial intelligence-related investments.
- Agriculture: Row crops face thin margins due to low prices and high costs, while beef producers benefit from higher output prices.
- Timber/Logistics: The industry is experiencing challenges following mill closures in Southeast Georgia, with demand for timber dropping over 60% as of January.
Tax/Fiscal Policy: Legislative discussions (SB 476) are aiming to reduce the state income tax rate to 4.99% and increase standard deductions.
Fiscal Position: The state entered 2026 with a strong $14.6 billion surplus in various reserve accounts, providing a buffer against economic headwinds.

THE VALDOSTA DAILY TIMES states:

Economists are offering a “sobering” forecast for 2026, marking the second consecutive year of slowed growth across both Georgia and the U.S. at large.

The state’s economy is projected to grow 1.5% in 2026, only marginally better than the 1.3% growth expected nationally, according to economists at the University of Georgia.

During a 2026 Georgia Economic Outlook presentation in downtown Atlanta Wednesday, interim Terry College of Business dean Santanu Chatterjee told business leaders that Georgia’s economy grew by roughly 3% in 2025. But heading into 2026, he said, growth will be slower as a result of “uncertainty” around trade policies, slowing population growth, labor force declines, and slower national economic growth.

Unemployment is also expected to be on the rise, with Georgia’s rates estimated to climb to 4.1%, an increase of half a percentage point.

National unemployment is expected to sit at 4.7%, up from the current 4.4%. Inflation is expected to hover around 3.5%, up from 3% in September.

Notably, in October 2025, Georgia Governor Brian Kemp traveled to South Korea to mend economic ties and address fallout from a massive federal ICE raid at a Hyundai battery plant in Georgia.

The raid, which detained 475 workers (mostly South Korean nationals), strained relations, prompting Kemp to visit, meet with officials, and advocate for visa reforms to protect critical economic partnerships at the Ellabell (Bryan County), Georgia plant.