Based upon statistics published by the Bureau of Economic Statistics, these are the fastest growing states in the United States by economy. Growth is measured by increases in GDP (gross domestic product) for each state.
The state with the fastest economic growth might surprise some people, but will not surprise anyone who knows which state is experiencing the fastest growth in oil production in the United States. The number one fastest growing state by economy is outpacing all the other 49 states mainly due to a boom in energy production.
States with the Fastest Economic Growth Rates in the United States
1. North Dakota – 13.4%
The GDP of North Dakota grew by 13.4% from 2011 to 2012, easily making North Dakota the fastest growing state in the United States as measured by economic growth. The economy in North Dakota is booming mainly due to rapid increases in energy production, especially oil.
From March of 2007 to March of 2013, oil production in North Dakota has surged by 564%, as oil companies have vastly increased their output of oil from the Bakken shale formation.
Despite the rapid year-over-year economic growth of 13.4%, North Dakota’s total economic output is one of the smallest in the United States. The state has the 46th largest economy in the country.
2. Texas – 4.8%
Though its growth rate is well behind first place North Dakota, Texas is the second fastest growing state in the United States by economy with growth of 4.8%. Like North Dakota, Texas is also experiencing a boom in energy production, but Texas also has many other industries operating in the state.
Texas has the second largest economy of the 50 states in the United States. Everything is big in Texas, and that includes both its economy, and its economy’s growth rate.
3. Oregon – 3.9%
Oregon has the third fastest growing economy in the United States, with a growth rate of 3.9%. Oregon has the 25th largest economy in the United States.
4. Washington – 3.6%
Washington has the fourth fastest economic growth rate in the United States, with growth of 3.6%. The state ranks 14th in terms of size of economy.
With both Oregon and Washington high on this list, it’s pretty clear the economy in the Pacific Northwest is outpacing most of the rest of the country.
T-5. Minnesota – 3.5%
Even though it gets pretty cold in Minnesota, that clearly does not stop economic growth, as the state’s economy grew by 3.5% in 2012. Minnesota has the 17th largest economy in the United States.
T-5. California – 3.5%
California, which easily has the largest economy of all the states in the United States, also had a 3.5% growth rate in 2012, tied for the fifth best with Minnesota. Despite any troubles you might hear about California, the state is just one massive economy that is growing at a decent clip.
7. Utah – 3.4%
There is a definite trend going on here, as Utah has the seventh fastest growing economy, with a growth rate of 3.4%. The majority of fastest growing states are located not just in the west, but the far west. Utah has the 33rd largest economy in the country.
T-8. Indiana – 3.3%
Indiana has the 16th largest economy in the United States.
T-8. Tennessee – 3.3%
Tennessee has the 18th largest economy in the country.
T-8. West Virginia – 3.3%
West Virginia has the 39th largest economy in the United States.