The BEA reported today on Gross Domestic Product (GDP) by state for 2012; here are some highlights:
1. Real GDP increased in 49 states and the District of Columbia in 2012, at an average national rate of 2.5%, following a 1.6% increase in 2011. Connecticut was the only state that experienced negative growth in real GDP last year at -0.1%.
2. Not surprisingly, the “economic miracle state” of North Dakota led the country last year with an eye-popping growth rate in real GDP of 13.4%, more than five times the national average of 2.5%, and almost eight percentage points higher than No. 2 Texas’s growth rate of 4.8%.
3. The 13.4% growth in North Dakota’s GDP last year was almost double the state’s 7.2% growth in 2011, and was the highest state GDP growth rate ever recorded in the BEA’s 25-year history of state GDP statistics back to 1988, except for a 14.1% growth rate for Oregon back in 1996.
4. On a per-capita basis, North Dakota also ranked No. 1 in the country with a 10.8% increase in its 2012 per-capita real GDP, compared to a 1.7% national average, and 3.27% increases for both Texas and West Virginia (tied for No. 2). The Peace Garden State’s 10.8% increase in real per-capita GDP last year was also the highest increase ever recorded by the BEA since 1988, except for a 11.9% increase in Oregon’s real per-capita GDP growth in 1996.
5. Every one of the 11 individual economic sectors tracked by the BEA in North Dakota registered positive growth in 2012, with the state’s mining sector making the greatest contribution at 3.26% (and almost 25%) of the state’s total 13.4% growth last year. Strong growth in other state sectors in 2012 included construction (1.32%), wholesale trade (1.54%) and transportation (1.77%). The chart above shows how the state’s booming oil production at record levels has contributed to a booming state economy, with record-setting growth in state real GDP.
6. Other states with booming energy sectors also experienced above-average growth in state GDP last year, including No. 2 Texas (4.8%), No. 7 Utah (3.3%) and No. 10 West Virginia (3.3%).
7. In a previous release on state personal income, the BEA reported in March that North Dakota led the country with the highest gain in state personal income for 2012 (12.4%) and the largest increase in per-capita state income (9.8%).
MP: As I have reported previously, North Dakota’s economic success goes beyond its well-publicized shale oil prosperity, which is being supplemented by other booming sectors including manufacturing, tourism, advanced manufacturing, information technology, and agriculture. The state’s pro-business climate should get some of the credit for the impressive output and job gains over the last several years, including leading the country in real GDP growth in 2012 at an eye-popping13.4%. Whatever North Dakota is doing, it’s working, and the state should be a nationwide model for economic development and job growth — call it the “Dakota Model.”