Just a Third of U.S. States Outperformed the U.S. Economy Last Year – Real Time Economics

Texas’s $1.5 trillion economy grew at an impressive 5.2% clip last year. Oil-fueled metro areas such as Dallas-Fort Worth have worked hard to diversify, including expanding their tech sectors.
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Just 16 states outperformed the country as a whole last year.

In 32 states, gross domestic product advanced at the same or slower pace than the 2.2% economic growth recorded for the U.S. And the economies in two other states—Alaska and Mississippi—contracted last year, according to Commerce Department data released Wednesday.

How could much of the country’s economic growth be concentrated in so few states? Among those 16 were the four largest state economies: California, Texas, New York and Florida.

The leader of that pack was Texas. The state’s $1.5 trillion economy is larger than Australia’s and grew at an impressive 5.2% clip last year.

Mining, which includes gas and oil extraction, accounted for nearly half of total economic growth in the state. Two other fast-growing industries were construction and the sector of manufacturing that includes oil refining.

Only tiny North Dakota’s economy grew faster in 2014 , rising 6.3%. But unlike North Dakota, Texas advanced its economy every quarter last year. North Dakota—like most of the rest of the country—contracted in the first quarter of 2014. Colorado, Pennsylvania, Utah and Washington were the other states to grow each quarter last year.

California’s economy, the largest state economy, grew 2.8%. The Golden State was propelled by a 7.7% growth rate in the third quarter of last year. Florida’s economy advanced 2.7% in 2014 and New York’s economy grew 2.5%.

See change in gross domestic product in 2014, by state, and annualized rate of change in each quarter:

Related reading:

Energy-Rich States Saw the Strongest Economic Growth in 2014

J.P. Morgan Economist Messes With Texas

After Energy-Job Losses, Texas Jobs Boom in May

U.S. GDP Expands at 3.7% Pace in Second Quarter

By Another Measure, U.S. Economic Growth Has Nearly Stalled This Year

 

 


 


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2 September 2015 | 2:01 pm – Source: blogs.wsj.com

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