2021 U.S. States By GDP And Which States Have Experienced The Biggest Growth

Regardless of renewed uncertainties and struggles relating to the delta variant of Covid-19, the financial system of america has rebounded immensely from the depths it reached within the first half of 2020. Throughout the U.S., each state skilled a harsh preliminary impression on their economies. Since then, nonetheless, the restoration has been very uneven, with some states returning to pre-pandemic type and others not a lot. Utilizing knowledge from the Bureau of Economic Analysis (BEA), we analyzed % modifications in annual and quarterly GDP knowledge to find out which states have seen their economies develop the quickest over the past twenty years — from 2000 to 2020 — in addition to over the past 10 years, 5 years, and year-over-year development from the primary quarter of 2020 to the primary quarter of 2021. Learn on to seek out out which locations made the listing of our top-10 greatest states by GDP development.

10 States With the Greatest Growths in GDP of 2021

Based mostly on the standards used within the examine, the vast majority of the states to make the listing of the states with the biggest growths in GDP are situated within the western half of the U.S. The rest of the top-10 states are these situated within the U.S. Southeast. Right here’s a more in-depth take a look at the best-performing economies when it comes to GDP by state.

1. Utah

The Utah financial system has been a powerhouse in current many years, therefore the rationale why it takes the No. 1 spot. During the last 5 years, Utah’s GDP grew by a wonderful 19.1%, the second-highest development charge for that interval out of all 50 states. Going again to 2010, actual GDP in Utah expanded by greater than a 3rd (36.6%), from roughly $123.47 billion in 2010, to an annual common of $168.62 billion in 2020 (with 2020 together with the pandemic’s most extreme impression). And the expansion in Utah’s financial system over the past 20 years is much more astounding: 82%, from an annual actual GDP of $92.62 billion in 2000, to almost $169 billion in 2020.

What’s extra, for the primary quarter of 2021, Utah’s GDP surged to $178.20 billion, which is the very best quarterly GDP in Utah’s historical past. Utah has managed to get well from the pandemic quicker than most states, in keeping with The Salt Lake Tribune, and thus boasts the smallest decline in GDP as a result of pandemic, with its annual actual GDP falling a mere 0.1% from 2019 to 2020. By comparability, Hawaii’s financial system suffered a year-over-year decline of 8% in its actual GDP from 2019 to 2020.

2. Washington

Dwelling to one of many largest concentrations of tech firms out of all 50 states, Washington managed to return in on the No. 2 spot on our listing. For the reason that flip of the millennium, Washington’s financial system has boomed, with its annual actual GDP rocketing by 74.2%, from $312.65 billion in 2000, to greater than $544.63 billion in 2020. In line with the most recent knowledge (first quarter 2021), Washington’s GDP stands at a record-high of $565.70 billion, a large enchancment over Q1 2020 when it was roughly $13 billion decrease ($552.60 billion).

3. Idaho

Idaho isn’t any stranger to financial and inhabitants development, although the latter grew noticeably when the pandemic hit and concrete employees on the West Coast relocated to the state in droves, creating points for native employers, in keeping with KREM. As of the primary quarter of 2021, Idaho actual GDP stands at $77.39 billion, which is a staggering determine for a state whose inhabitants is simply about 1.85 million individuals. The pandemic’s financial impression introduced Idaho’s GDP down barely, declining only one.1% from 2019 to 2020. Idaho’s financial system has recovered very nicely, experiencing year-over-year GDP development of two% from Q1 2020 to Q1 2021. Outdoors the pandemic, the Idaho financial system has reported unbelievable development, in each the short- and long-term. During the last 5 years, Idaho GDP rose by greater than 17%; over the past 10 years, it rose by virtually 28%; and from 2000 to 2020, annual actual GDP in Idaho rose by 56%, from roughly $47.49 billion in 2000, to $74.08 billion in 2020.

4. Colorado

For the final 20 years, Colorado has turn into one of many high locations for internally migrating Individuals. Many Colorado cities — not simply Denver — have seen an explosion of their populations and financial exercise. In consequence, Colorado ranks because the No. 4 state the place GDP has grown essentially the most over time. For the reason that flip of the millennium, Colorado’s actual GDP has grown by greater than half, from $232.83 billion in 2000, to $351.07 billion in 2020. Whereas 2020’s annual GDP is down from 2019’s approximate $356.28 billion, Colorado’s financial system has improved fairly nicely for the reason that preliminary impression of the pandemic in 2020. Colorado’s actual GDP within the first quarter this yr is up 1.4% from the identical time final yr: from $360.16 billion in Q1 2020, to $365.05 billion in Q1 2021.

5. Arizona

The Arizona financial system is the 19th greatest within the U.S., primarily based on 2020 annual actual GDP by state, with a median GDP of roughly $320.66 billion that yr. That’s up a exceptional 54.3% since 2000, when annual Arizona GDP that yr stood at roughly $207.77 billion. The Covid-19 pandemic gave Arizona a little bit of bother, however the state’s GDP solely fell 0.9%, from about $232.59 billion in 2019, all the way down to $320.66 billion in 2020. At present, Arizona’s GDP has reached a historic excessive of $334.03 billion in Q1 2021.

6. Oregon

Oregon takes sixth place on our listing of one of the best states by GDP development. The Pacific Northwest appears to be on fireplace as each Oregon and Washington’s economies confirmed unbelievable development over the previous few many years. During the last 5 years, the Oregon financial system grew on the fourth-fastest charge within the nation — 14.1% — from $191.86 billion in 2015, to virtually $219 billion in 2020. The newest figures for Oregon GDP are strong — with an estimated actual GDP of $226.53 billion in Q1 2021 — however they disguise the truth that Oregon’s financial system contracted by 2.8% yr on yr: annual GDP fell from $225.33 billion in 2019, to $218.97 billion in 2020.

7. California

Although this examine solely used share modifications in GDP — not absolute greenback quantities — when calculating scores for every state, California nonetheless managed to rank among the many top-10 states for GDP development. For the reason that flip of the millennium, California GDP expanded by practically 60%, going from practically $1.71 trillion in 2000, to an annual common of $2.72 trillion in 2020. Nevertheless, California’s financial system took the impression of the pandemic significantly badly, with actual GDP reaching an annual common of over $2.8 trillion in 2019, earlier than shedding tens of billions of {dollars} as Covid-19 wreaked havoc all through 2020. Certainly, California’s GDP for Q1 2021 is definitely nonetheless down from final yr, when quarterly actual GDP was about $8 billion greater in Q1 2020.

8. Texas

Coming in at No. 8 is the nice state of Texas. They usually say, “Don’t mess with Texas,” however Covid-19 gave it a shot. The Texas financial system bought hit onerous, with annual actual GDP dropping by 3.5% from 2019 to 2020. That’s worse than No. 7 California’s decline (-2.8%), however on par with the year-over-year decline for the U.S. general (-3.5%). Happily, the Texas financial system has recovered, with actual GDP within the first quarter of 2021 up 0.8% from the identical interval final yr: $1.763 trillion in Q1 2021 versus $1.749 in Q1 2020. Texas’s most spectacular determine, nonetheless, is the financial system’s growth for the reason that flip of the millennium. From an annual GDP of slightly over $998 billion in 2000, the Texas financial system has surged by 70.6% in 20 years, to succeed in an annual GDP of just below $1.75 trillion by 2020.

9. Georgia

This financial dynamo of the American southeast has grown steadily and constantly over the previous few many years, with Georgia’s financial system changing into the second largest within the U.S. South (behind solely that juggernaut, Florida). Georgia’s annual GDP again in 2000 was $391.21 billion, earlier than it actually took off and grew by a rare 10.1% over the following 10 years, reaching an annual common of $430.7 billion for 2010. Since then, the Georgia financial system has surged ahead once more, with its actual GDP growing by virtually 24%, from $430.7 billion in 2010 to roughly $533.57 billion in 2020. Additionally, Georgia managed to soak up the financial results of the pandemic higher than most states, with annual GDP solely declining 2.5% from 2019 to 2020, a full share level higher than the nationwide common decline.

10. Florida

Florida is a state that’s no stranger to pure disasters, particularly hurricanes, however the Covid-19 pandemic actually threw it for a loop. With huge vacationer locations like Disneyworld, Common Studios, and hundreds of coveted white sandy seashores, economically Florida was fairly susceptible to the worst of what the pandemic needed to provide. Happily, the state managed to maintain financial losses largely in test, experiencing a decline of two.9% in annual GDP from 2019 to 2020. That’s higher than the general U.S. decline (-3.5%), and much better than the expertise of most U.S. states. Florida’s GDP — already a large $641.25 billion again in 2000 — grew by virtually 50% over the past 20 years, reaching an annual actual GDP of $935.67 billion in 2020. At present, Florida’s GDP is at a record-high of $969.56 billion, as of Q1 2021, up 0.7% from Q1 2020.

Desk of All 50 States by GDP in 2021

Right here you’ll discover a breakdown of all 50 states and their annual actual GDPs, going again to 2000. The desk is organized alphabetically, however you possibly can kind it by the rating decided within the examine by clicking on the desk header “Rank in Research”.

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