State Economy Outperforming National GDP
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndiana's economy is outpacing the national average. A U.S. Department of Commerce Bureau of Economic Analysis report shows Indiana's 2013 Gross Domestic Product increased 2.1 percent, compared to the 1.8 percent national economic growth rate. June 11, 2014
News Release
WASHINGTON, D.C. – Real gross domestic product (GDP) increased in 49 states in 2013, according to new statistics released today by the Bureau of Economic Analysis (BEA). Nondurable-goods manufacturing; real estate and rental and leasing; and agriculture, forestry, fishing, and hunting were the leading contributors to real U.S. economic growth. U.S. real GDP growth slowed to 1.8 percent in 2013 after increasing 2.5 percent in 2012.
Real GDP increased in all eight BEA regions. Growth accelerated in the Rocky Mountain and Plains regions. The Rocky Mountain region grew the fastest, led by Wyoming, which increased 7.6 percent. Nondurable-goods manufacturing was the largest contributor to U.S. real GDP by state growth in 2013. This industry increased 5.3 percent in 2013 after declining 0.5 percent in 2012. It was the leading contributor to growth in three of the eight BEA regions and in 10 states.
Nondurable-goods manufacturing contributed 2.65 percentage points to growth in Louisiana and 1.19 percentage points to growth in Texas. Real estate and rental and leasing was also a leading contributor to U.S. real GDP by state growth. This industry increased 1.6 percent in 2013, down slightly from 2.2 percent in 2012. It contributed to growth in all eight BEA regions and was the leading contributor to growth in the New England region. Real estate and rental and leasing contributed 0.50 percentage point or more to growth in North Dakota, Nevada, and Massachusetts.
Agriculture, forestry, fishing, and hunting contributed to real GDP growth in all eight BEA regions and in 49 states and the District of Columbia. It was the largest contributor to the growth in GDP in the Plains region. This industry contributed 1.36 percentage points or more to
growth in North Dakota, South Dakota, Iowa, and Nebraska.
Although mining was not a significant contributor to real GDP growth for the nation, it did play a key role in several states. This industry was a large contributor in five of the fastest growing states: North Dakota, Wyoming, West Virginia, Oklahoma, and Colorado. In North Dakota, the fastest growing state in 2013, mining contributed 3.61 percentage points to the state’s 9.7 percent growth in real GDP. By contrast, Alaska was the only state where real GDP decreased in 2013, primarily due to a decline in mining that resulted from lower output on the state’s North Slope.
The government sector declined in six of the eight BEA regions, 39 states, and the District of Columbia, shaving 0.41 percentage point from growth in Georgia and Louisiana. A decline in the government sector was the primary factor for real GDP decreasing in 2013 in the District of Columbia, where the federal government accounts for nearly 32 percent of GDP.
Per capita real GDP by state in 2013.
Per capita real GDP ranged from a high of $70,113 in Alaska to a low of $32,421 in Mississippi. Per capita real GDP for the U.S. was $49,115.
The next release of GDP by state is planned for the summer of 2015. The release will include revised statistics for 1997–2013 and advance statistics for 2014.
Comprehensive Revision of Gross Domestic Product by State
The statistics released today reflect the results of the comprehensive revision of gross domestic product (GDP) by state for 1997–2012. This revision not only incorporates new and revised source data, but it also includes significant improvements in classification and statistical methods to more accurately portray the state economies. Significant changes introduced with this revision include:
Updated industry definitions consistent with the 2007 North American Industry Classification System (NAICS)
Results of the 2013 comprehensive revision of state personal income
Results of the 2013 comprehensive revision of the national income and product accounts and the 2014 comprehensive revision of the annual industry accounts, which included the recognition of research and development (R&D) expenditures as capital, the capitalization of entertainment, literary, and other artistic originals, the expansion of the capitalization of the ownership transfer costs of residential fixed assets, the use of an improved accrual accounting treatment of transactions for defined benefit pension plans, and improved methods for computing financial services provided by commercial banks.
More detailed statistics of GDP by state are available on BEA’s interactive website at http://www.bea.gov/itable/index.cfm. Additional information on this revision will be available in an article in the July 2014 issue of the Survey of Current Business.
Advance Statistics of GDP by State for 2013 by NAICS Sector
The advance statistics of GDP by state for 2013 are based on source data that are incomplete or subject to further revision by the source agency. Revised statistics, based on more complete data, will be released in the summer of 2015.
More information on the methodology used to produce the advance 2013 statistics, on the revised statistics of GDP by state for 1997–2012, and on revisions to the statistics of GDP by state will appear in an article in the July 2014 issue of the Survey of Current Business.
Explanatory Notes Definitions. GDP by state is the state counterpart of the Nation's gross domestic product (GDP), the Bureau's featured and most comprehensive measure of U.S. economic activity. GDP by state is derived as the sum of the GDP originating in all the industries in a state.
The statistics of real GDP by state are prepared in chained (2009) dollars. Real GDP by state is 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. The statistics of real GDP by state and of quantity indexes with a reference year of 2009 were derived by applying national chain-type price indexes to the current-dollar values of GDP by state for the 64 detailed NAICS-based industries for 1997 forward.
The chain-type index formula that is used in the national accounts is then used to calculate the values of total real GDP by state and of real GDP by state at more aggregated industry levels.
Real GDP by state may reflect a substantial volume of output that is sold to other states and countries. To the extent that a state's output is produced and sold in national markets at relatively uniform prices (or sold locally at national prices), real GDP by state captures the differences across states that reflect the relative differences in the mix of goods and services that the states produce. However, real GDP by state does not capture geographic differences in the prices of goods and services that are produced and sold locally.
Relation of GDP by state to U.S. Gross Domestic Product (GDP).
An industry's GDP by state, or its value added, in practice, is calculated as the sum of in comes earned by labor and capital and the costs incurred in the production of goods and services. That is, it includes the wages and salaries that workers earn, the income earned by individual or joint entrepreneurs as well as by corporations, and business taxes such as sales, property, and Federal excise taxes–that count as a business expense. GDP is calculated as the sum of what consumers, businesses, and government spend on final goods and services, plus investment and net foreign trade. In theory, incomes earned should equal what is spent, but due to different data sources, income earned, usually referred to as gross domestic income (GDI), does not always equal what is spent (GDP). The difference is referred to as the “statistical discrepancy.”
Starting with the 2004 comprehensive revision, BEA's annu