Thursday, June 6, 2013

Colorado GDP growth moderate at 2.1 percent in 2012

The BEA released new data on 2012 real GDP today:
Real gross domestic product (GDP) increased in 49 states and the District of Columbia in 2012, according to new statistics released today by the U.S. Bureau of Economic Analysis (BEA) that breakdown GDP by state. Durable–goods manufacturing, finance and insurance, and wholesale trade were the leading contributors to real U.S. economic growth. U.S. real GDP by state grew 2.5 percent in 2012 after a 1.6 percent increase in 2011.
The map shows that Colorado falls in the middle quintile for real GDP growth among the states, with a year-over-year growth rate of 2.1 percent. Oil industry growth drove big increases in North Dakota and Texas.

 Comapring year-over-year growth for the US and Colorado, we find that the nation overall has been slightly outpacing Colorado in recent years. In the US, the growth in real GDP from 2011 to 2012 was 2.4 percent.
The third graph shows per capita real GDP.  In 2012, Colorado per capita real GDP was 46,242, and the US level was $42,784. In neither case has per capita real GDP returned to previous peak levels which occurred in 2007. In 2007, Colorado per caop real GDP peaked at $47,480, and it peaked at $43,499 in the US. 
In year-over-year growth for per capita real GDP, we find that the US has been outpacing Colorado since 2010. As noted in our article on per capita personal income, some of this disparity is explained by the fact that population is increasing in Colorado, even while incomes and productivity are largely stable. 

Overall, these numbers tell us that in 2012, Colorado was experiencing growth, but it was moderate compared to many areas of the nation.