PRESS RELEASES

Vitner forecasts the Southeast's economy to grow 3.0 percent next year, compared with 2.3 percent growth nationwide. The Southeast's economy grew 4.4 percent in 1997, while the national economy increased 3.7 percent.

"The party is far from over in the Southeast," Vitner said. "While growth may slow slightly, the Southeast enters 1998 with very b momentum. Job and income growth have consistently averaged gains about one and half times faster than the nation, and the Southeast's unemployment rate is half a percentage point lower than the rest of the country."

Nationally, the impact of Asia's economic problems should be significant but narrowly focused - as was the case with the Texas oil crash in 1986 and the Mexican peso collapse of 1995, said David Orr, Chief Capital Markets Economist at First Union. Even though those problems caused overall Gross Domestic Product growth to drop from 4 percent to 2 percent, most businesses and regions were not impacted to that degree.

"A good analogy would be to think of a company with 10 divisions of the same size that had planned on 10 percent sales growth across the board," Orr said. "Instead, one division sees a 50 percent plunge, causing overall sales growth to be 4 percent. The 'hit' to the overall company is significant, yet 90 percent of the divisions remain unscathed."

The Southeast, Vitner said, is better insulated from Asia's economic problems than most other parts of the country, particularly the West Coast and Midwest. Only 6.5 percent of the South's exports are to Asia, and Asian visitors account for a relatively small share of the region's tourist trade.

Here is a state-by-state breakdown of Vitner's Southeast forecast:

• Florida. The Sunshine State's economy will remain one of the South's hottest in 1998. Florida's economy is expected to grow 3.5 percent, driven by solid gains in tourism, commercial construction, high-tech manufacturing and international trade. There are some risks, however, with the greatest being that the Asian Flu strikes South America - leading to a major slowdown in key export markets such as Brazil, Argentina and Chile.
  
• Georgia. Following the 1996 Atlanta Olympic Games, job and income growth has remained solid and the quality of jobs being created has improved significantly. Georgia's economy is expected to increase 3.0 percent in 1998 and once again add more than 100,000 new jobs. Atlanta continues to dominate the state - accounting for about 60 percent of all new jobs - but Savannah, Columbus and Athens also are growing rapidly.
  
• Maryland. The state's high tech sector is leading the way, though government payrolls also are growing - as a result of some jobs being relocated from Washington, D.C. Maryland's economy is expected to increase 2.4 percent in 1998. Industrial recruitment is increasing, and the state's financial services sector is posting solid gains. Commercial development also has rebounded, particularly of office and warehouse space.
  
• North and South Carolina. Each state continues to land major new businesses, and existing companies such as BMW, Nucor and Freightliner have expanded their operations. The Carolinas' economy is expected to grow 3.0 percent. Both states are continuing to see layoffs in the textile and apparel industries, and tobacco farming will contribute less to growth next year. Yet, the financial services sector should continue its solid growth, and commercial office development - which has posted its best gain in a decade - should maintain its b momentum.
  
• Tennessee. The state's economy has cooled off slightly, after several years of exceptionally b gains. Tennessee's economy is expected to increase 2.9 percent in 1998. Tourism is holding up well in Nashville and Memphis, and that sector should continue to expand with the construction of a new football stadium in downtown Nashville. However, the state's auto and healthcare sectors are not growing as rapidly as earlier in the decade.
  
• Virginia. Defense cutbacks and government downsizings are a thing of the past, while high-tech manufacturing is booming. Virginia's economy is expected to rise 3.4 percent in 1998, as the state adds nearly 80,000 new jobs. The Washington D.C. suburbs in northern Virginia will continue to lead the state, while Richmond and Hampton Roads also will see solid gains.

-- FTU --