North Dakota leads nation in GDP growth
North Dakota has led the nation in economic growth in recent years, and last year was no exception. The U.S. Bureau of Economic Analysis said June 10 that the state ranked first in the country for gross domestic product, a measure of total economic production, increasing by 6.3 percent. The largest contributor was mining, including oil and gas, which contributed 2.47 percentage points to the increase.
North Dakota has averaged an annual growth rate of 6.5 percent over the past decade and an 8.7 percent growth rate since 2010 when Bakken development began to take shape. This is compared to a national average of 1.4 percent.
“This top ranking proves once again that our continued economic growth stems from nearly every business sector and that no single industry tells the whole story of North Dakota’s progress,” said Gov. Jack Dalrymple. “We have worked hard to diversify our economy and expand our targeted industries, and those strategies are producing real results with increased economic production, job growth and rising wages.”
Texas was the next highest at 5.2 percent with both Wyoming and West Virginia close behind at 5.1 percent. The other state influenced most by mining was Colorado which experienced a 4.7 percent increase. Montana ranked seventh with an increase of 1.8 percent but mining actually forced a 0.27 percent dip in overall GDP.
Factors contributing to the top ranking include continued growth in economic production, new jobs, rising wages and more export sales in various areas of commerce. North Dakota’s per capita personal income in 2014 was $54,951 and the state has created nearly 123,000 new jobs since 2004. It also ranks first in the growth in employment and revenue of women-owned firms since 1997.
Real GDP rose in 48 of the 50 states as well as in the District of Columbia in 2014. The only two states that experienced GDP contraction in 2014 were Alaska and Mississippi. U.S. real GDP grew 2.2 percent in 2014 following 1.9 percent growth in 2013.
- Maxine Herr