Author: Devon Holmes
In 2015, the state’s Gross Domestic Product (GDP) was just under $439 million, making it the 10th largest economy in the country. In relation to North Carolina’s comparison states – Alabama, Georgia, South Carolina, Tennessee, Texas, and Virginia – the state has been in the middle of the pack in Real GDP growth following the Great Recession. Annual data suggests that the state has not grown as quickly as the country as a whole coming out of the recession. However, looking at the past four quarters (2Q 2015 to 2Q 2016), NC’s GDP growth has been accelerating, outpacing the nation. LEAD’s new economic snapshot provides a view of North Carolina’s GDP - comparing it to the United States’ GDP and comparison states, as well as providing an explanation of what GDP is, and why analysts use it as a measure of economic activity. Some key findings include:
- North Carolina’s GDP growth has underperformed over the past decade relative to the average for the Southeast US; however, improvements have been made more recently.
- Over the last 10 years, per capita Real GDP for the state has declined 5.9% while the nation has seen an increase of 2.4%.
- Since 2005, North Carolina’s Real GDP has grown slower than the nation.
- Over the past five years, 2010 to 2015, North Carolina’s Real GDP grew slower than the United States’ (6.4% to 10.0% respectively).
- More recently, the state Real GDP grew 2.0% from 2014 to 2015, which was below the growth experienced by the nation (2.5%).
- The first half of 2016 appeared more positive for NC, with initial Real GDP estimates 2.3% higher than in 2015 – which was greater than the US average of 1.3% and Southeast average of 2.2%.