PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

State GDP: Strong vs. Weak Growth States

By at 5 December, 2023, 10:38 pm

by Raymond J. Keating –

Real economic growth for the U.S. registered an unimpressive 2.1 percent in the second quarter of this year. However, growth is not the same across the nation. It varies, and often considerably, from state to state.

The U.S. Bureau of Economic Analysis just released its estimates for state GDP for the second quarter 2023. And growth did indeed range widely, from Wyoming registering the fastest growth at 8.7 percent (seasonally adjusted, annualized rate), while Vermont suffered a woeful -1.9 percent change in real GDP.

Following are the states that experienced the strongest growth in the second quarter 2023:

State

Real GDP Growth

Wyoming

  +8.7%

Kansas

  +7.4%

Nebraska

  +5.9%

Texas

  +4.9%

Alaska

  +4.8%

Oklahoma

  +4.5%

New Mexico

  +3.7%

North Dakota

  +3.7%

West Virginia

  +3.6%

Louisiana

  +3.2%

 

In contrast, the following states suffered the weakest growth:

State

Real GDP Growth

Hawaii

  +0.6%

Maine

  +0.6%

New York

  +0.4%

Alabama

  +0.3%

Georgia

  +0.3%

Missouri

  -0.1%

Wisconsin

  -0.1%

Arkansas

  -0.4%

Delaware

  -0.7%

Mississippi

  -1.8%

Vermont

  -1.9%

 

When looking at the list of states with the highest growth rates, the following point made by the BEA was clearly at work: “Mining increased in 43 states and was the leading contributor to growth in 8 states, including Wyoming, the state with the largest increase in real GDP.”

And while economic growth will vary from quarter to quarter for a variety of reasons, state officials need to keep in mind that a sound policy foundation is needed to help secure long-term, strong growth. That means, specifically, low taxes, a light regulatory burden, and limited government. Get the policy mix right, and that will go a long way in securing solid growth for the long haul.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council. His latest books on the economy are The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist and The Weekly Economist II: 52 More Quick Reads to Help You Think Like an Economist.

 

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