“Stronger” Economic Forecast for Ocean City in 2024

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An audience fills the ballroom at The Flanders Hotel.

By MADDY VITALE Gregory M. Matuson did not gloss over what he believes to be the state of the times when it comes to inflation, minimum wage, the stock market, politics and housing prices. Matuson, president and CEO of Sturdy Savings Bank, presented some negatives and some positives in his outlook for 2024 in a talk Thursday at the Ocean City Regional Chamber of Commerce’s January membership meeting. Matuson covered a lot of ground during the presentation in front of an audience that filled the grand ballroom at The Flanders Hotel in Ocean City. As for the economic outlook for 2024, he said, “most business owners and executives will grow stronger this year.” He said he is optimistic about the future. “Overall, I am positive about the outlook for our economy overall. I think it was a good summer for most businesses,” he noted. “I know it was a good summer for our bank." The biggest issue that he believed created difficulty for local merchants in 2023 was the increase in the minimum wage to $15. The result, Matuson said, was that merchants hired fewer employees because they couldn’t afford to pay the higher hourly wage. Another issue that affected the local and national economy was the COVID-19 pandemic. It created supply-chain related delays and increased costs for things.

An audience fills the ballroom at The Flanders Hotel. But things are looking up, Matuson said. “It does appear we’ve turned a corner with our lengthy battle to bring down inflation,” he said, adding that there had been talk of a recession in the early part of 2023. Matuson spoke about gas prices and how it affected travel, especially to shore towns during the summer. Gas prices are going down now. “We are at the lows of the most recent cycle which peaked in the middle to the late part of summer,” he said, adding that in the last week gas was below $3 a gallon in some places. He said that the stock market will continue to be volatile, but that by the end of 2024 the market will improve. When it came to housing stock, he said there are “a number of challenges there. I think housing volume continues to stay in the lower range." Interest rates, however, are still at the higher end as well as the cost for homes, but he believes it will level off. “I think we’ve seen the highs in housing and I think those extremely high rates are behind us,” he said.

The Boardwalk is a hub of activity for vacationers who come to shop, stroll the Boardwalk and hit the beach. Matuson also brought up global volatility in locations such as Ukraine, the Middle East and Israel’s war against Hamas in Gaza and how it affects the economy. He emphasized that it concerns him that the government gets involved with things that “don’t involve us.” He also touched upon the presidential election, saying that there is divisiveness in the country that he has not seen before and that this election in particular, “feels different to me.” Even with the hurdles, the troubles in the country economically, politically and otherwise, Matuson believes that things will improve, he said. “I think everyone is striving for something in the middle and I am hopeful that we can return there at some point,” he said. After Matuson’s presentation, Michele Gillian, executive director of the Ocean City Regional Chamber of Commerce, thanked Matuson on behalf of all of the small businesses that are a part of the Chamber. “Thanks for all of that good information,” Gillian said. “We’re going to have a good year and things are going to be great in Ocean City.”