State’s GDP Rebounds From Second Quarter Losses
Connecticut’s economy grew 32.6% in the third quarter of 2020, rebounding from a massive, pandemic-driven contraction the previous quarter.
The healthcare, manufacturing, and finance sectors led the recovery after the state’s GDP contracted 31.1% in the second quarter.
The U.S. Bureau of Economic Analysis reported that GDP grew in all states in the third quarter, with the nation’s economy growing at annual rate of 33.4%.
The New England states averaged 34.2% growth, led by Vermont, where the economy expanded 43%—sixth fastest in the country—for the quarter.
New Hampshire’s GDP grew 40.9%, followed by Maine (37.3%), Rhode Island (35.5%), Massachusetts (33.1%), and Connecticut.
The BEA report said the increase in national GDP growth “reflected continued efforts to reopen businesses and resume activities that were postponed or restricted due to COVID-19.”
Based on the third quarter, Connecticut’s annual GDP is now $283.6 billion, or about 2% below the state’s 2019 economic output.
That represents 25% of New England’s $1.12 trillion economy, second only to Massachusetts, which drives 52% of the region’s economic output.
All but three of the state’s industry sectors saw growth in the third quarter, led by healthcare and social assistance which expanded 5.41%.
Durable goods manufacturing grew 5.21% in the third quarter after shrinking 3.47% the previous quarter.
That sector grew 4.13% nationally and 4.6% in the New England states.
Accommodation and food services, which shrank 3.98% the previous quarter, grew 4.26%.
Retail trade expanded 2.81%, followed by wholesale trade (2.2%), finance and insurance (1.93%), professional services (1.76%), administrative services (1.34%), government (1.17%), nondurable goods manufacturing (1.04%), other services (1%), construction (0.97%), real estate (0.87%), arts and entertainment (0.86%), transportation and warehousing (0.67%), information (0.53%), and educational services (0.45%).
The mining sector was unchanged while utilities contracted 0.02% and agriculture shrank 0.06%.
Best, Worst States
Nevada had the fastest growing economy in the third quarter, with GDP expanding 52.2%.
Tennessee (46.5%), Michigan (44.2%), Idaho (43.3%), and Indiana (43.3%) rounded out the top five states.
Wyoming’s GDP grew the slowest of any state in the quarter, expanding 19.4%.
North Dakota (22.4%), New Mexico (23.6%), Oklahoma (24.2%), and Delaware (27.6%) filled out the bottom five states.
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