State’s Economy Grew 2.4% in 2022

Connecticut’s economy grew 2.4% in 2022, overcoming a sluggish fourth quarter as most industry sectors saw annual productivity gains.

The state’s GDP growth was 17th best in the country, based on the U.S. Bureau of Economic Analysis’ latest economic report.

GDP grew in 42 states, as the U.S. economy expanded 2.1%. The New England regional economy grew 1.9%.

Vermont posted the region’s best growth, expanding 2.8%—10th best in the country.

After Connecticut, Massachusetts’ economy expanded 2%, followed by Maine (1.8%), Rhode Island (1.5%), and New Hampshire (0%).

‘Right Direction’

“We’re heading in the right direction,” said CBIA president and CEO Chris DiPentima. “Demand for goods and services remains strong.

“I can only imagine what the growth rate would be if we weren’t dealing with a labor shortage.”

As of January, Connecticut has 97,000 open jobs—39% more than in February 2020—while the labor force has declined by 42,800 people in just the last 12 months.

DiPentima said Connecticut employers continued to innovate, finding ways to boost productivity amid significant labor force challenges.

“They continue to do things to produce output despite not being able to find workers,” DiPentima said.

“Filling the state’s 97,000 open jobs by making the state more affordable and expanding career pathways is key to unlocking Connecticut’s true economic potential.”

Sector Growth

Connecticut’s $321.8 billion economy accounts for 25% of New England’s $1.3 trillion GDP, and is the second largest in the region behind Massachusetts ($688.4 billion).

Fourteen of the 22 industry sectors that BEA tracks posted productivity gains in 2022, led by the finance and insurance sector, which grew 0.69%.

Administrative services expanded 0.54%, followed by information (0.53%), professional services (0.4%), healthcare (0.36%), arts, entertainment, and recreation (0.23%), management (0.22%), wholesale trade (0.2%), accommodation and food services (0.17%), educational services (0.13%), durable goods manufacturing (0.09%), nondurable goods manufacturing (0.07%), and federal government (0.01%).

CT clocks in at No. 17 in overall growth and No. 27 in income gains for all of 2022 after an up-and-down year. We'll take it. https://t.co/tQ4KEcrmoX@GovNedLamont @CBIANews @CTGOP @CTDems

— Dan Haar (@DanHaarColumns) March 31, 2023

The agriculture and mining sectors posted no growth in 2022. Retail trade was the worst performing of all sectors, contracting 0.46%.

Construction shrank 0.32%, followed by state and local government (-0.23%), real estate (-0.09%), military (-0.05%), and transportation (0.03%).

Idaho’s economy expanded 4.9% in 2022 to lead all states, followed by Tennessee (4.3%), Florida (4%), Nevada (3.7%), and Texas (3.4%).

Alaska’s GDP declined 2.4%, the worst of the 50 states, followed by Louisiana (-1.8%), Iowa (-1.5%), North Dakota (-1.3%), and Oklahoma (-1%).

Personal Income

Connecticut personal income grew 2.6% last year—27th fastest in the nation—after several years of stagnant growth.

The state’s per capita personal income was $84,972 in 2022, the highest in the country. The U.S. average was $65,423, with a growth rate of 2.4%.

The New England region—with average per capita income of $79,326—averaged 2% growth, led by Maine (2.6%) and Connecticut.

Connecticut’s personal income grew 2.6% last year after several years of stagnant growth.

Personal income grew 2.5% in New Hampshire, followed by Vermont (2.4%), Massachusetts (1.5%), and Rhode Island (1.4%).

Idaho saw the fastest growth in the country, with personal income up 6.2%, followed by Colorado (5.4%), Texas (5.3%), Alaska (4.8%), and Utah (4.7%).

Louisiana saw no growth, worst of the 50 states, followed by Hawaii (0.3%), Michigan (0.4%) California (0.4%), and Mississippi (0.5%).