The Federal Bureau of Economic Analysis finally released the 2009 Gross State Product (GSP) results for all 50 states. This is the state version of the common GDP indicator nationally. National declines averaged a real loss of 2.1% after factoring in the effects of inflation. However, Alaska was one of only 10 states to show growth in 2009, finishing the year with real GSP gains of 3.5%. This ranked Alaska 4th best out of 50 states behind Oklahoma, Wyoming and North Dakota. Alaska also placed 3rd when rating GSP per capita.
Nationally, the largest losses were a result of economic slowdown in the construction sector and durable goods manufacturing such as automobiles, furniture and appliances. Hardest hit by these forces were Nevada (-6.4%), Michigan (-5.2%), New York (-4.3%) and Arizona (-3.9%).
States like Alaska that grew in the midst of the national problems had one thing in common, natural resource development. Oil, natural gas, agriculture, forestry and fishing all helped make positive economic contributions in 2009 to a handful of states.
Apart from natural resources, Alaska was also supported by increased government expenditures both from the Federal government and a large state capital budget. Government spending remained strong into 2010 and is expected to continue in 2011, but is less certain thereafter. Financial services and oil & gas contributed to Alaska’s GSP gains in 2009, though each of these sectors has seen job loss in the first nine months of 2010 and may not be a source of growth in the current year.
This report has traditionally been released in June of each year and is slated for June 7, 2011 next year. It is unclear why the report was delayed until late November this year. The full report can be found at: http://www.bea.gov/newsreleases/regional/gdp_state/2010/pdf/gsp1110.pdf
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