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.”

Sector Losses

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.

All but three of the state’s industry sectors expanded in the third 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.