Remember the recent Q1 GDP growth rate of -2.9%? North Dakota’s economy is growing so fast it would make China blush. Clocking in at a rate of 9.7%, North Dakota’s growth leads the nation followed by Wyoming, West Virginia, Oklahoma, and Idaho. There is a common thread between this growth – MINING. This includes natural gas, oil, and coal.
What comes with this growth?
- $15/hr for serving tacos
- $25/hr for waiting tables
- $80k/year truck drivers
This boom is no secret but the economic growth in these areas is staggering AND steady.
USA Today published a piece on this growth:
The United States economy grew 1.9% in 2013, down from the 2.8% growth rate in 2012, as growth in the world’s largest economy remained inconsistent. The largest contributors to the national economy were nondurable goods manufacturing, real estate and leasing, as well as agriculture and related industries.
While the U.S. economy grew less than 2%, the output of a number of states grew well in excess of 3% last year. North Dakota continued its torrid growth pace, leading the nation with a state GDP growth rate of nearly 10%. This year, Wyoming and West Virginia were the second- and third-fastest growing states, respectively, rebounding from slow growth in 2012. Based on data released this week by the Bureau of Economic Analysis (BEA), these are the 10 states with the highest real GDP growth rates for 2013.
There were considerable differences in what drove national growth and what drove output in the fastest growing states, according to Cliff Woodruff, an economist at the BEA. “For the nation, it was nondurable goods manufacturing and agriculture, forestry, fishing and hunting [that] were the top two contributors to national growth,” Woodruff said.
On the other hand, in “five of the top states, [growth] was primarily a result of mining,” which includes oil, natural gas and coal production. Among these was Wyoming, the nation’s second-fastest growing state, where mining accounted for 6.1 percentage points of the state’s 7.6% growth rate.