South Dakota had the fastest growing economy in the nation during the third quarter of 2016, according to the U.S. Bureau of Economic Analysis. The Rushmore State’s gross domestic product (GDP) increased by growth 7.1 percent during the third quarter, while New Mexico ranked last in the nation with a 0.1 percent decline.
The third quarter is typically South Dakota’s strongest as agricultural producers make their biggest sales. In 2016, the agricultural sector grew by 2.01 percent in the third quarter and accounted for the largest share of the state’s robust economic growth.
The finance and insurance sector grew 1.69 percent in South Dakota in the third quarter, compared to 9.0 percent nationally. In this sector, the Rushmore State trailed No. 1 Delaware, with 2.50 percent growth, but outpaced No. 3 Iowa, which had 1.38 percent growth.
The wholesale trade and government sectors grew 0.75 and 0.39 percent, respectively. Real estate, education, and non-durable goods posted negative growth.
Significant growth in GDP was seen regionally, with North Dakota, Minnesota and Iowa reporting over four percent increases. Nebraska’s economy expanded by 3.9 percent, while Wyoming posted the lowest increase regionally, at 0.3 percent. Wyoming’s small increase may be attributed to declines in the mining, construction and government sectors.
