State’s Economy Slows Further in 2014

State’s Economy Slows Further in 2014

State-GDP-Growth_061215-572x368Connecticut’s economy grew by an anemic 0.6% in 2014 as the gap between the state and regional and national economies widened.

The Bureau of Economic Analysis’ annual gross domestic product report released this week showed Connecticut’s economy was 42nd among all states and the District of Columbia.

Of the New England states, only Maine (0.2%) showed weaker growth, while Vermont also saw a 0.6% increase in economic output.

Massachusetts’ economy was the region’s strongest last year, growing at a 2.3% clip, for 15th in the country.

New Hampshire also saw 2.3% growth while Rhode Island–until recently a perennial economic straggler–grew twice as fast as Connecticut.

The U.S. economy grew 2.2% last year, up from 1.9% in 2013.

The top 10 states:

1. North Dakota (6.3%)
2. Texas (5.2%)
3. Wyoming (5.1%)
4. West Virginia (5.1%)
5. Colorado (4.7%)
6. Oregon (3.6%)
7. Utah (3.1%)
8. Washington (3%)
9. California (2.9%)
10. Oklahoma (2.8%)

The bottom 10 states:

1. Alaska (-1.3%)
2. Mississippi (-1.2%)
3. Virginia (0%)
4. Maine (0.2%)
5. New Jersey (0.4%)
6. Iowa (0.4%)
7. Indiana (0.4%)
8. Vermont (0.6%)
9. Connecticut (0.6%)
10. South Dakota (0.6%)

Connecticut’s economy has struggled to rebound from the 2008-2010 recession. The state’s best post-recession year was 2013, when the economy grew a modest 1%, two years after shrinking by -0.9%.

That pattern of weak growth reflects policy decisions made over the last decade that have increased business costs and jeopardized jobs and opportunities for those who work and live in Connecticut.

Connecticut has the highest unemployment rate in New England. The jobs report for April showed that while the private sector lost jobs, government added 1,500 jobs.

The massive tax and spending hikes included in the new, two-year $40 billion state budget passed narrowly by the Senate and House of Representatives on June 3 further threaten Connecticut’s economy.