Based upon statistics published by the Bureau of Economic Analysis, these are the ten slowest growing states in the United States by economy. The United States as a whole grew by 2.5% in 2012, but every one of the states on this list grew by much smaller rates.
Embarrassingly, the slowest growing state in the country as measured by economic growth actually saw a decrease in its economic growth in 2012. That one state is the only state in the country that did not have positive economic growth in 2012.
States with the Slowest Economic Growth Rates in the United States
1. Connecticut – negative growth of -.10%
Connecticut, which has the 24th largest economy in the United States, was the only state in the country to experience negative economic growth in 2012. Connecticut’s economy shrunk by -.10% in 2012.
That is a very small decline in number terms, but is easily the most embarrassing economic growth number in the country, since Connecticut is the only state of the 50 states to have negative economic growth. What is wrong with the economy in the Nutmeg State?
T-2. Delaware – positive growth of .20%
Delaware is tied with two other states for the second worst economic growth rate in the country, with an anemic growth rate of just .20%. Delaware has the 40th largest economy in the United States, which is actually pretty good considering the state is the second smallest in the country by land size and has few natural resources.
T-2. South Dakota – positive growth of .20%
Unlike its neighbor to the north, North Dakota which is the fastest growing state in the country, South Dakota is experiencing just tepid growth at best. The state, which has the 47th largest economy in the country, had just .20% growth in 2012.
I’m guessing the Bakken shale formation does not extend into South Dakota. Thanks to massive increases in oil drilling in the Bakken shale formation, North Dakota has seen oil production boom in recent years.
T-2. Wyoming – positive growth of .20%
Wyoming, which has the 49th largest economy in the country, also saw just .20% growth in 2012.
T-2. New Mexico – positive growth of .20%
The fourth state with just a .20% growth rate is New Mexico, which has the 37th largest economy in the country.
6. Idaho – .40%
Idaho, the 42nd largest economy in the United States, had a .40% growth rate in 2012.
T-7. New Hampshire – .50%
A little surprised to see New Hampshire on this list, as the state has no income tax and that usually fosters economic growth. Being in New England, though, hurts, as the region easily has the slowest growth rate of all the regions in the country. New Hampshire has the 41st largest economy in the country.
T-7. Maine – .50%
Maine, another New England state, is tied with neighbor New Hampshire for the seventh slowest growing economy in the United States. Maine has the 43rd largest economy in the country.
Three of the eight slowest growing states in the United States by economy are located in New England.
T-9. Virginia – 1.1%
While the last two states on the list are tied for ninth place with 1.1% growth rates, it should be noted that their growth rates are still more than double each of the other states on this list. Virginia, with a growth rate of 1.1%, makes this list, but the state is still doing much better than any of the eight states listed above.
Virginia has the 10th largest economy in the country, and is the largest to make this list of slowest growing economies in the United States.
T-9. Alaska – 1.1%
Alaska is tied with Virginia for ninth place, with an economic growth rate of 1.1%. Alaska has the 44th largest economy in the country.
Oil production has been declining in Alaska, and probably will continue to do so unless the government allows drilling in places like the Arctic National Wildlife Refuge (ANWR), which is located in the northeastern part of the state.