WASHINGTON – New data from the Bureau of Economic Analysis (BEA) shows that Minnesota was one of only seven states in the country to experience a shrink in its gross domestic product (GDP).
In the first quarter of fiscal year 2017, Minnesota’s GDP shrank 0.3 percent. This is the seventh worst mark in the United States, ahead of only Montana, Kansas, Hawaii, Iowa, South Dakota, and Nebraska.
“Real gross domestic product increased in 43 states and the District of Columbia in the first quarter of 2017,” the BEA wrote in a press release. “Real GDP by state growth in the first quarter ranged from 3.9 percent in Texas to -4.0 percent in Nebraska.”
The sector that took the largest hit this quarter was the agriculture, forestry, fishing, and hunting sector. In Minnesota that sector took a 1.44 percent hit. The U.S. as a whole saw that sector shrink 0.41 percent.
Among its neighbors, Minnesota finished well ahead of two states and well behind two others. Iowa’s GDP fell 3.2 percent, and South Dakota’s GDP fell 3.8 percent, the third and second worst marks in the country. On the other side, North Dakota’s GDP increased by 1.6 percent, while Wisconsin’s increased by 2.1 percent in the past quarter. This was the fifth best mark of of any state.
The United States as a whole saw its GDP increase 1.2 percent in the past quarter. Minnesota also lagged the nation in the entirety of the 2016 fiscal year, posting a 1.3 percent growth mark compared with 1.6 percent for the nation.
The Bureau of Economic Analysis lumped Minnesota into their Plains region. While neighboring Wisconsin is left out of this region, Iowa, North Dakota, and South Dakota remain included. In addition, Nebraska, Missouri, and Kansas are included. While Missouri’s 0.9 percent GDP growth beat Minnesota, Kansas’ 0.7 percent shrink in GDP, and Nebraska’s four percent shrink were much worse than Minnesota’s.