New London Economy Fastest Growing of State’s Metro Areas
The Norwich-New London economy grew the fastest of any Connecticut metropolitan area in 2016, posting 3.9% growth for the year.
Three of the state’s four major metro areas saw GDP growth last year, based on a report released this week by the U.S. Bureau of Economic Analysis.
Hartford-West Hartford-East Hartford was the exception, with the area’s economy seeing no growth in 2016—a year after leading the state at 4%.
New Haven-Milford’s GDP grew 1.8% after expanding 1.1% the previous year.
Bridgeport-Stamford-Norwalk’s GDP exceeded $100 billion for the first time in 2016, growing 1.1%.
The Fairfield County metro area has the state’s largest economy and saw 1.2% growth the previous year.
Connecticut’s overall economy grew a modest 1% in 2016. The New England states averaged 1.7% GDP growth while the U.S. economy grew 1.5%.
Norwich-New London’s GDP shrank between 2012-2014, bouncing back in 2015 with 3.2% growth. At $15.8 billion, the region has the state’s smallest economy.
Non-durable goods manufacturing was the area’s strongest sector in 2016, expanding 2.76% while government—which includes the state’s two casinos—grew 0.77%, and durable goods 0.52%.
CBIA economist Pete Gioia said surging demand at Groton-based General Dynamics Electric Boat was a key contributing factor to the area’s economic performance.
Bridgeport-Stamford-Norwalk has the state's largest GDP, exceeding $100 billion for the first time in 2016.
"The numbers in New Haven and metro Fairfield County were also relatively strong while Hartford's performance over the last year is a concern."
Norwich-New London also has the state's fastest growing job market in percentage terms, with 1.1% growth (1,400 positions) in the 12 months through August.
Finance, insurance, and real estate was New Haven-Milford's strongest sector, expanding 0.76%. Trade grew 0.54% and professional and business services 0.21%.
The New Haven area contributed $44.1 billion to the state's GDP last year.
Finance also led all sectors in Bridgeport-Stamford-Norwalk, growing 0.95%. Professional and business services grew 0.52% and information 0.47%.
At $90 billion, greater Hartford has the state's second largest economy. Finance (0.17%), government (0.09%), and durable goods manufacturing (0.01%) were the only sectors with growth last year.
The BEA reports GDP grew in 267 of 382 U.S. metropolitan areas in 2016, ranging from 8.1% in Lake Charles, Louisiana and Bend-Redmond, Oregon to -13.3% in Odessa, Texas.
Norwich-New London was the 37th fastest growing economy in the country, followed by New Haven-Milford (158th), Bridgeport-Stamford-Norwalk (204th), and greater Hartford (270th).
GDP for U.S. metropolitan areas grew 1.7% in 2016, led by growth in professional and business services, information services, and finance, insurance, and real estate.
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