South Dakota’s Gross Domestic Product (GDP) grew by just 0.5% in the third quarter of 2017, according to a recent release from the Bureau of Economic Analysis. This was the slowest rate of state GDP growth in the nation.
The Agriculture, Forestry, Fishing and Hunting industry was the primary reason for slow growth in the third quarter; owing to dry conditions and low crop prices in 2017. In South Dakota, the Agriculture, Forestry, Fishing and Hunting industry contracted by 2.7% in the third quarter, as compared to 2.4% nationally. A view of the Agriculture industry’s impact on the regional third quarter GDP is below:
|State||% Decline in Agriculture||% Change from Q2||National Ranking|
The primary growth driver in the third quarter was the Finance and Insurance industry, which grew by 1.7%. Nationally, the Finance industry increased by 14.7% and was the top contributor to growth in seven of the ten fastest growing states. Several other industries also contributed to third quarter growth: Durable Goods Manufacturing (0.5%), Retail Trade (0.4%), and Health Care and Social Assistance (0.4%).