Real gross domestic product (GDP) in South Dakota declined by 3.8 percent in the first quarter of 2017, according to recently released data by the Bureau of Economic Analysis. With this drop, the Rushmore State finished 49th in the nation for GDP growth, lagging all other states except Nebraska. Texas landed in the No. 1 spot with 3.9 percent GDP growth.
The table below shows that many states in the Great Plains region experienced similar, if less severe, economic contractions during the first quarter of 2017. The primary driver of widespread decline in output was a crunch in the agricultural sector. National output in the Agriculture, Forestry, Fishing, and Hunting sector declined by 39.8 during the first quarter. South Dakota experienced the largest decline in this sector in the nation—a drop of 6.0 percent.
Setbacks in Retail Trade and Finance also contributed to South Dakota’s lagging GDP in the first quarter, with each sector falling by -0.4 and -0.1 percent, respectively. Areas of growth in the state included Construction at 0.6 percent, Government at 0.5 percent, Real Estate at 0.4 percent, and Durable Goods at 0.5 percent.
North Dakota experienced the fastest GDP growth in the region at 1.6 percent. Wyoming placed second with 0.9 percent economic growth. The positive growth in both states was driven by strong gains in their Mining and Resource Extraction industries which compensated for declines in Agriculture. View the table below for first quarter economic growth and decline in the region:
|State||Percent Change in GDP||National Ranking|