GDP statistics released today by the U.S. Bureau of Economic Analysis confirm that Connecticut's GDP growth, just shy of 1%, continues to lag the growth of competitor states in the area.
At 0.9%, we’re last in New England in first-quarter 2016 GDP growth.
Over the same period, Massachusetts GDP grew at 1.6%, New Hampshire at 2.9%, Maine at 2.3%, Vermont at 1.3% and even traditionally weak Rhode Island saw 1.4% growth for the quarter.
While Connecticut’s performance exceeded that of many states in the energy-rich middle of the U.S.—such as North Dakota and other oil-bust alley states—those states are coming off years of superior economic performance.
Today’s troubling GDP numbers are further evidence that Connecticut needs to turn the tide and encourage local business investment in our state.
Connecticut’s economy grew by just 0.6% in 2015, again well behind the regional and national averages. And that was despite fourth quarter growth of 1.7%, 23rd best in the country.
Connecticut-based business leaders are looking for concrete reasons to continue investing here.
Rhode Island posted 1.1% GDP growth, followed by New Hampshire (0.8%), Connecticut, Maine (0.4%), and Vermont (0.2%).
CBIA’s recent Survey of Small Businesses showed that in spite of modest hiring and expansion plans, Connecticut-based business leaders are looking for concrete reasons to continue investing here—and looking to Connecticut’s policymakers to reform anti-business regulations, pass laws favorable to business and job creation, and create budgets without tax increases.
Pete Gioia is an economist with CBIA. Follow him on Twitter @CTEconomist.