US Boasts More Growth Than South Dakota

In 2017, South Dakota’s economy grew by 0.3% compared to 2.1% for the nation. Since 2012, GDP growth in South Dakota has remained positive, but the Rushmore State grew more slowly than the nation as a whole in 2017. In 2016, the economy in South Dakota grew by 1.7% compared to 1.5% growth for the nation. From 2000 and 2017, the compound annual growth rate for South Dakota was 2.6%.

The weakness in the state’s economy in recent years follows a period of expansion around the time of Great Recession. In 2007, the economy in South Dakota grew by 3.9%, compared to 1.5% growth for the nation. In the heart of the Great Recession from 2008 and 2009, the US experienced a 2.7% decline in GDP, while South Dakota recorded 1.0% growth. In 2011, as the economy recovered and corn prices rose, South Dakota’s GDP grew by impressive 6.2%. (The state's recent high for GDP growth came in 2002 at 10.6%.)

Among the 50 states, South Dakota’s 0.3% GDP growth in 2017 tied with Mississippi at number 45 compared to number 1 Washington, at 4.4%. Louisiana and Connecticut tied for last place as both their economies shrank by 0.2%. The small growth in South Dakota’s gross domestic product continued despite decline in the agriculture, forestry, fishing and hunting sector, which decreased on an inflation-adjusted basis from $3.4 million to $2.9 million from 2016 to 2017.