A new report from the U.S. Bureau of Economic Analysis (BEA) shows that 46 of our country’s states saw a decline in their gross domestic product (GDP) during the first quarter of 2022, Just the News reports.
It’s a staggering figure.
The only four states that managed to escape this trend were Massachusetts, Michigan, New Hampshire, and Vermont. They actually saw increases in their GDP. Michigan saw an increase of 0.1%, Massachusetts 0.2%, Vermont 0.7%, and New Hampshire 1.2%.
How? The BEA chalks it up to increases in “government and government enterprises” in New Hampshire and Massachusetts, in “agriculture, forestry, fishing, and hunting” in Vermont, and in “utilities” in the case of Michigan.
While New Hampshire, with its 1.2% GDP increase, is at one extreme, Wyoming is at the other with a negative 9.7% decrease in GDP.
Everyone else falls somewhere in between these two extremes – it’s just that the overwhelming majority of states find themselves on Wyoming’s side of zero rather than New Hampshire’s.
Considering how many states are in the negative, it will come as no surprise that the country as a whole is also in the negative. The U.S. GDP decreased by 1.6% during the first three months of 2022.
The question is why? And, chances are you already know at least part of the reason.
The BEA explains
In its report, the BEA explains why it is that so many states, as well as the country as a whole, are seeing their GDP go down.
The BEA reports:
Real GDP decreased in 8 of the 21 industry groups for which BEA prepares quarterly state estimates. Nondurable goods manufacturing, retail trade, and finance and insurance decreased 17.0, 10.2, and 7.1 percent, respectively, for the nation and were the leading contributors to the decrease in real GDP (GDP release table 12). These three industries contributed decreases in all 50 states and the District of Columbia (table 2).
The agency adds:
Mining, quarrying, and oil and gas extraction contributed decreases in 49 states. This industry was the leading contributor to the decreases in 10 states, including Wyoming, Alaska, North Dakota, West Virginia, and New Mexico—the 5 states with the largest decreases in real GDP.
In other words, it sounds as though the Biden administration is where a large part of the blame ought to be directed.