Trends in State GDP: 2010
Nearly every state saw an increase in real gross domestic product1 in 2010—a welcome sign of economic recovery after two straight years of drops in the national average. Each region performed differently, with a few states posting impressive 4-plus percent gains and a majority of states falling between 1.5 and 3.5 percent.
See the other Capitol Research policy briefs in this series: The Book of the States 2011: Regional Analysis
- A June 2011 report by the Bureau of Economic Analysis reveals that real GDP increased in 48 states and the District of Columbia in 2010 over 2009 with a national average increase of 2.6 percent.
- The only states to have a drop in year-over-year GDP were Nevada and Wyoming, each decreasing by less than half a percent. Indiana, Massachusetts New York, North Dakota and Wyoming each experienced big gains in GDP, all growing by 4 percent of more, with North Dakota posting an impressive 7.1 percent increase over 2009.
- Durable–goods manufacturing was the biggest contributor to real GDP growth in a slight majority of states—29— while retail trade contributed to growth in every state. Construction, however, continued to drag down recovery, declining for the sixth consecutive year and bringing down the growth rate in most states.
- With average year-over-year GDP growth of 3.1 percent, CSG’s Midwestern region showed the most improvement of any region in 2010 and was well above the national average of 2.6 percent.
- Indiana (4.6 percent) and North Dakota (7.1 percent) posted the biggest increases, while Illinois (1.9 percent) and Nebraska (1.9 percent) had the most modest gains in the region.
- With average year-over-year GDP growth at 2.9 percent, the Eastern region was CSG’s second highest performing region, beating the national average of 2.6 percent.
- Massachusetts (4.2 percent) and New York (5.1 percent) posted the largest increases, while Delaware (1.3 percent) and New Hampshire (1.3 percent) had the most modest gains in the region.
- With average year-over-year GDP growth at 2.4 percent, CSG’s Southern region fell just below the national average of 2.6 percent.
- Tennessee (3.5 percent) and Virginia (4 percent) posted the biggest increases, while Oklahoma (1 percent) and Mississippi (1.1 percent) had the most modest gains in the region.
1 GDP is calculated as the sum of what consumers, businesses and government spend on final goods and services, plus investment and net foreign trade. All figures were prepared by the Bureau of Economic Analysis in chained (2005) dollars, which provides an inflation–adjusted measure of each state’s gross product that is based on national prices for the goods and services produced within that state. For more information, visit www.bea.gov.