This State Has the Most Sluggish Economy in America

The American economy has expanded nearly every year since 2010, with the sole exception of 2020, the year large segments of the U.S. economy were shut down to prevent the spread of COVID-19. Growth in gross domestic product, or GDP, is perhaps the single most comprehensive and commonly city economic indicator — and by this measure, the U.S. is currently outperforming many of its peers globally.

24/7 Wall St. Key Points:

• Relative to its peers on the world stage, the U.S. economy has proved especially strong and resilient in recent years, as indicated by GDP growth.
• Still, rising prosperity has not been equally distributed across the country, and in some states, economic growth has been frustratingly slow.
• Also: Discover the next Nvidia

American GDP expanded by 2.9% in 2023, far outpacing the 1.8% average growth rate among high-income countries and the 0.4% GDP growth rate across the European Union, according to the World Bank. Economic expansion, whether in the U.S. or elsewhere, is often the product of technological advancements, rising productivity, or a growing labor force. GDP growth typically fuels lower unemployment, improved living standards, and greater business opportunities.

Rising economic output has been broad-based in the U.S. in recent years, and as of 2023, the latest year of available data from the Bureau of Economic Analysis, every state in the country reported a growing economy. Still, GDP growth rates vary considerably across the 50 states, and in some places, economic growth has been sluggish, relative to the national average.

Using data from the BEA, 24/7 Wall St. identified the 25 states with the slowest economic growth. States are ranked on their real GDP growth rate from 2022 to 2023. To account for inflation, economic output figures used in this calculation are chained to 2017 dollars. We also reviewed changes in personal income from 2022 to 2023 and current, industry-level contribution to GDP with data from the BEA. Supplemental data on population, used to calculate personal income per capita, are one year estimates from the U.S. Census Bureau’s 2022 and 2023 American Community Survey.

Among the states on this list, economic growth in 2023 ranges from 2.6% to just 0.2%. Driving up consumer spending and expanding the labor pool, population growth can be an economic boon — and of the 11 states to report a net population decline in 2023, seven are on this list. (Here is a look at the U.S. cities people are fleeing.)

Consumer spending has long been the backbone of the U.S. economy, and economic growth in most states on this list was driven by the retail trade sector in 2023. However, gains fueled by high-performing sectors, like retail trade, were partially offset in these places by meaningful contractions in other industries. In many states on this list, sectors including agriculture, construction, and finance and insurance presented a drag on economic growth.

Still, GDP growth — while comparatively sluggish — has translated to tangible benefits for millions of residents in these states. Personal income per capita increased by anywhere from $1,220 and $4,840 between 2022 and 2023 among the states on this list. (Here is a look at the richest county in every state.)

Why It Matters

Year-over-year change in gross domestic product, or GDP, is perhaps the most comprehensive indicator of the health of any economy. GDP growth generally benefits households, businesses, and governments. While American GDP growth outpaced that of many of its peers on the world stage in 2023, many states have reported sluggish growth rates that more closely resemble some European economies.

25. Nevada

• GDP growth in state, 2022-2023: +2.6% (+$4.9 billion)
• State GDP in 2023: $195.4 billion (0.9% of US economy)
• State GDP in 2022: $190.5 billion (0.9% of US economy)
• Change in personal income, 2022-2023: +6.6% (+$13.1 billion)
• Population change, 2022-2023: +0.52% (+16,404 people)
• Personal income per capita: $66,238 in 2023, $62,460 in 2022
• Largest driver of economic growth in mid-2024: Retail trade (+1.1 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Accommodation and food services (-0.48 ppts. to GDP from Q2 to Q3 2024)

24. Mississippi

• GDP growth in state, 2022-2023: +2.6% (+$3.0 billion)
• State GDP in 2023: $119.5 billion (0.5% of US economy)
• State GDP in 2022: $116.6 billion (0.5% of US economy)
• Change in personal income, 2022-2023: +5.4% (+$7.4 billion)
• Population change, 2022-2023: -0.01% (-367 people)
• Personal income per capita: $49,652 in 2023, $47,116 in 2022
• Largest driver of economic growth in mid-2024: Agriculture, forestry, fishing, and hunting (+1.9 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Nondurable goods manufacturing (-0.26 ppts. to GDP from Q2 to Q3 2024)

23. Pennsylvania

• GDP growth in state, 2022-2023: +2.5% (+$19.9 billion)
• State GDP in 2023: $799.2 billion (3.5% of US economy)
• State GDP in 2022: $779.4 billion (3.5% of US economy)
• Change in personal income, 2022-2023: +5.3% (+$45.3 billion)
• Population change, 2022-2023: -0.08% (-10,325 people)
• Personal income per capita: $68,945 in 2023, $65,401 in 2022
• Largest driver of economic growth in mid-2024: Retail trade (+1.04 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Construction (-0.05 ppts. to GDP from Q2 to Q3 2024)

22. Arkansas

• GDP growth in state, 2022-2023: +2.4% (+$3.3 billion)
• State GDP in 2023: $142.9 billion (0.6% of US economy)
• State GDP in 2022: $139.6 billion (0.6% of US economy)
• Change in personal income, 2022-2023: +4.9% (+$8.3 billion)
• Population change, 2022-2023: +0.73% (+22,095 people)
• Personal income per capita: $57,635 in 2023, $55,337 in 2022
• Largest driver of economic growth in mid-2024: Agriculture, forestry, fishing, and hunting (+2.76 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Construction (-0.2 ppts. to GDP from Q2 to Q3 2024)

21. Oregon

• GDP growth in state, 2022-2023: +2.3% (+$5.9 billion)
• State GDP in 2023: $262.0 billion (1.2% of US economy)
• State GDP in 2022: $256.1 billion (1.2% of US economy)
• Change in personal income, 2022-2023: +5.7% (+$15.4 billion)
• Population change, 2022-2023: -0.16% (-6,779 people)
• Personal income per capita: $67,838 in 2023, $64,095 in 2022
• Largest driver of economic growth in mid-2024: Retail trade (+0.95 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Agriculture, forestry, fishing, and hunting (-0.54 ppts. to GDP from Q2 to Q3 2024)

20. New Hampshire

• GDP growth in state, 2022-2023: +2.2% (+$2.1 billion)
• State GDP in 2023: $93.5 billion (0.4% of US economy)
• State GDP in 2022: $91.4 billion (0.4% of US economy)
• Change in personal income, 2022-2023: +5.7% (+$6.0 billion)
• Population change, 2022-2023: +0.49% (+6,823 people)
• Personal income per capita: $78,944 in 2023, $75,030 in 2022
• Largest driver of economic growth in mid-2024: Retail trade (+1.28 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Construction (-0.1 ppts. to GDP from Q2 to Q3 2024)

19. Kentucky

• GDP growth in state, 2022-2023: +2.1% (+$4.7 billion)
• State GDP in 2023: $224.4 billion (1.0% of US economy)
• State GDP in 2022: $219.8 billion (1.0% of US economy)
• Change in personal income, 2022-2023: +5.4% (+$12.8 billion)
• Population change, 2022-2023: +0.31% (+13,844 people)
• Personal income per capita: $55,360 in 2023, $52,696 in 2022
• Largest driver of economic growth in mid-2024: Retail trade (+0.96 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Administrative and support and waste management and remediation services (-0.06 ppts. to GDP from Q2 to Q3 2024)

18. New Jersey

• GDP growth in state, 2022-2023: +2.1% (+$13.7 billion)
• State GDP in 2023: $663.9 billion (2.9% of US economy)
• State GDP in 2022: $650.2 billion (3.0% of US economy)
• Change in personal income, 2022-2023: +5.9% (+$42.8 billion)
• Population change, 2022-2023: +0.31% (+29,142 people)
• Personal income per capita: $82,103 in 2023, $77,737 in 2022
• Largest driver of economic growth in mid-2024: Retail trade (+1.12 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Construction (-0.13 ppts. to GDP from Q2 to Q3 2024)

17. Ohio

• GDP growth in state, 2022-2023: +2.1% (+$14.6 billion)
• State GDP in 2023: $709.8 billion (3.1% of US economy)
• State GDP in 2022: $695.3 billion (3.2% of US economy)
• Change in personal income, 2022-2023: +5.6% (+$38.1 billion)
• Population change, 2022-2023: +0.25% (+29,877 people)
• Personal income per capita: $61,495 in 2023, $58,409 in 2022
• Largest driver of economic growth in mid-2024: Retail trade (+0.98 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Finance and insurance (-0.41 ppts. to GDP from Q2 to Q3 2024)

16. California

• GDP growth in state, 2022-2023: +2.0% (+$64.6 billion)
• State GDP in 2023: $3.2 trillion (14.3% of US economy)
• State GDP in 2022: $3.2 trillion (14.4% of US economy)
• Change in personal income, 2022-2023: +5.4% (+$162.3 billion)
• Population change, 2022-2023: -0.16% (-64,149 people)
• Personal income per capita: $81,255 in 2023, $76,963 in 2022
• Largest driver of economic growth in mid-2024: Retail trade (+1.11 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Agriculture, forestry, fishing, and hunting (-0.32 ppts. to GDP from Q2 to Q3 2024)

15. Hawaii

• GDP growth in state, 2022-2023: +2.0% (+$1.7 billion)
• State GDP in 2023: $88.6 billion (0.4% of US economy)
• State GDP in 2022: $86.9 billion (0.4% of US economy)
• Change in personal income, 2022-2023: +5.5% (+$4.9 billion)
• Population change, 2022-2023: -0.35% (-5,058 people)
• Personal income per capita: $66,176 in 2023, $62,529 in 2022
• Largest driver of economic growth in mid-2024: Retail trade (+1.19 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Construction (-0.17 ppts. to GDP from Q2 to Q3 2024)

14. Michigan

• GDP growth in state, 2022-2023: +1.9% (+$10.5 billion)
• State GDP in 2023: $554.3 billion (2.4% of US economy)
• State GDP in 2022: $543.7 billion (2.5% of US economy)
• Change in personal income, 2022-2023: +5.4% (+$31.7 billion)
• Population change, 2022-2023: +0.03% (+3,143 people)
• Personal income per capita: $61,144 in 2023, $58,004 in 2022
• Largest driver of economic growth in mid-2024: Retail trade (+1.13 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Administrative and support and waste management and remediation services (-0.2 ppts. to GDP from Q2 to Q3 2024)

13. Georgia

• GDP growth in state, 2022-2023: +1.9% (+$12.5 billion)
• State GDP in 2023: $678.2 billion (3.0% of US economy)
• State GDP in 2022: $665.7 billion (3.0% of US economy)
• Change in personal income, 2022-2023: +5.6% (+$35.2 billion)
• Population change, 2022-2023: +1.07% (+116,351 people)
• Personal income per capita: $59,882 in 2023, $57,292 in 2022
• Largest driver of economic growth in mid-2024: Retail trade (+1.06 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Agriculture, forestry, fishing, and hunting (-0.49 ppts. to GDP from Q2 to Q3 2024)

12. Tennessee

• GDP growth in state, 2022-2023: +1.8% (+$7.6 billion)
• State GDP in 2023: $422.1 billion (1.9% of US economy)
• State GDP in 2022: $414.5 billion (1.9% of US economy)
• Change in personal income, 2022-2023: +6.3% (+$26.1 billion)
• Population change, 2022-2023: +1.07% (+75,150 people)
• Personal income per capita: $62,229 in 2023, $59,190 in 2022
• Largest driver of economic growth in mid-2024: Retail trade (+1.5 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Administrative and support and waste management and remediation services (-0.21 ppts. to GDP from Q2 to Q3 2024)

11. Minnesota

• GDP growth in state, 2022-2023: +1.6% (+$6.2 billion)
• State GDP in 2023: $390.9 billion (1.7% of US economy)
• State GDP in 2022: $384.7 billion (1.7% of US economy)
• Change in personal income, 2022-2023: +4.2% (+$16.9 billion)
• Population change, 2022-2023: +0.36% (+20,731 people)
• Personal income per capita: $72,557 in 2023, $69,868 in 2022
• Largest driver of economic growth in mid-2024: Retail trade (+1.0 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Agriculture, forestry, fishing, and hunting (-0.62 ppts. to GDP from Q2 to Q3 2024)

10. Rhode Island

• GDP growth in state, 2022-2023: +1.6% (+$998.0 million)
• State GDP in 2023: $63.3 billion (0.3% of US economy)
• State GDP in 2022: $62.3 billion (0.3% of US economy)
• Change in personal income, 2022-2023: +5.1% (+$3.6 billion)
• Population change, 2022-2023: +0.20% (+2,228 people)
• Personal income per capita: $67,563 in 2023, $64,412 in 2022
• Largest driver of economic growth in mid-2024: Retail trade (+1.14 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Construction (-0.23 ppts. to GDP from Q2 to Q3 2024)

9. Maryland

• GDP growth in state, 2022-2023: +1.6% (+$6.5 billion)
• State GDP in 2023: $422.9 billion (1.9% of US economy)
• State GDP in 2022: $416.4 billion (1.9% of US economy)
• Change in personal income, 2022-2023: +6.0% (+$26.2 billion)
• Population change, 2022-2023: +0.25% (+15,593 people)
• Personal income per capita: $75,391 in 2023, $71,333 in 2022
• Largest driver of economic growth in mid-2024: Retail trade (+0.97 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Construction (-0.17 ppts. to GDP from Q2 to Q3 2024)

8. New York

• GDP growth in state, 2022-2023: +1.5% (+$26.1 billion)
• State GDP in 2023: $1.8 trillion (7.9% of US economy)
• State GDP in 2022: $1.8 trillion (8.0% of US economy)
• Change in personal income, 2022-2023: +5.7% (+$86.5 billion)
• Population change, 2022-2023: -0.54% (-105,935 people)
• Personal income per capita: $82,323 in 2023, $77,486 in 2022
• Largest driver of economic growth in mid-2024: Retail trade (+0.73 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Finance and insurance (-0.26 ppts. to GDP from Q2 to Q3 2024)

7. Wisconsin

• GDP growth in state, 2022-2023: +1.4% (+$4.8 billion)
• State GDP in 2023: $344.6 billion (1.5% of US economy)
• State GDP in 2022: $339.7 billion (1.5% of US economy)
• Change in personal income, 2022-2023: +5.2% (+$18.9 billion)
• Population change, 2022-2023: +0.31% (+18,416 people)
• Personal income per capita: $64,976 in 2023, $61,971 in 2022
• Largest driver of economic growth in mid-2024: Agriculture, forestry, fishing, and hunting (+1.18 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Accommodation and food services (-0.07 ppts. to GDP from Q2 to Q3 2024)

6. Vermont

• GDP growth in state, 2022-2023: +1.4% (+$484.0 million)
• State GDP in 2023: $35.2 billion (0.2% of US economy)
• State GDP in 2022: $34.8 billion (0.2% of US economy)
• Change in personal income, 2022-2023: +5.3% (+$2.2 billion)
• Population change, 2022-2023: +0.06% (+400 people)
• Personal income per capita: $66,932 in 2023, $63,629 in 2022
• Largest driver of economic growth in mid-2024: Retail trade (+1.39 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Construction (-0.19 ppts. to GDP from Q2 to Q3 2024)

5. Indiana

• GDP growth in state, 2022-2023: +1.3% (+$5.0 billion)
• State GDP in 2023: $404.3 billion (1.8% of US economy)
• State GDP in 2022: $399.3 billion (1.8% of US economy)
• Change in personal income, 2022-2023: +4.3% (+$17.3 billion)
• Population change, 2022-2023: +0.43% (+29,162 people)
• Personal income per capita: $61,243 in 2023, $58,966 in 2022
• Largest driver of economic growth in mid-2024: Retail trade (+1.17 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Mining, quarrying, and oil and gas extraction (+0 ppts. to GDP from Q2 to Q3 2024)

4. Massachusetts

• GDP growth in state, 2022-2023: +1.2% (+$7.5 billion)
• State GDP in 2023: $615.5 billion (2.7% of US economy)
• State GDP in 2022: $608.1 billion (2.8% of US economy)
• Change in personal income, 2022-2023: +5.4% (+$32.4 billion)
• Population change, 2022-2023: +0.28% (+19,425 people)
• Personal income per capita: $90,596 in 2023, $86,209 in 2022
• Largest driver of economic growth in mid-2024: Retail trade (+0.76 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Utilities (-0.38 ppts. to GDP from Q2 to Q3 2024)

3. Delaware

• GDP growth in state, 2022-2023: +1.1% (+$865.0 million)
• State GDP in 2023: $78.0 billion (0.3% of US economy)
• State GDP in 2022: $77.1 billion (0.4% of US economy)
• Change in personal income, 2022-2023: +5.8% (+$3.8 billion)
• Population change, 2022-2023: +1.33% (+13,494 people)
• Personal income per capita: $66,850 in 2023, $64,030 in 2022
• Largest driver of economic growth in mid-2024: Agriculture, forestry, fishing, and hunting (+1.42 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Finance and insurance (-0.17 ppts. to GDP from Q2 to Q3 2024)

2. Illinois

• GDP growth in state, 2022-2023: +1.0% (+$9.1 billion)
• State GDP in 2023: $885.7 billion (3.9% of US economy)
• State GDP in 2022: $876.5 billion (4.0% of US economy)
• Change in personal income, 2022-2023: +5.1% (+$43.9 billion)
• Population change, 2022-2023: -0.26% (-32,343 people)
• Personal income per capita: $72,245 in 2023, $68,568 in 2022
• Largest driver of economic growth in mid-2024: Retail trade (+1.0 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Agriculture, forestry, fishing, and hunting (-0.81 ppts. to GDP from Q2 to Q3 2024)

1. Iowa

• GDP growth in state, 2022-2023: +0.2% (+$471.0 million)
• State GDP in 2023: $202.1 billion (0.9% of US economy)
• State GDP in 2022: $201.6 billion (0.9% of US economy)
• Change in personal income, 2022-2023: +2.2% (+$4.3 billion)
• Population change, 2022-2023: +0.20% (+6,487 people)
• Personal income per capita: $62,779 in 2023, $61,559 in 2022
• Largest driver of economic growth in mid-2024: Retail trade (+1.15 ppts. to GDP from Q2 to Q3 2024)
• Largest drag on economic growth in mid-2024: Agriculture, forestry, fishing, and hunting (-2.37 ppts. to GDP from Q2 to Q3 2024)

The post This State Has the Most Sluggish Economy in America appeared first on 24/7 Wall St..