Louisiana’s state personal income grew by 5.4% from 2019 to 2020, but below the national average of 6.1% for the year, according to estimates released today by the U.S. Bureau of Economic Analysis.
In 2020, the leading contributor to personal income growth across all states and Washington, D.C., was the 36.6% year-over-year rise in transfer receipts, which reflected new government relief payments provided by the CARES Act and accounted for the entire $1.1 trillion increase in personal income for the U.S. However, increases in earnings were more than offset by decreases in property income, including dividends, interest and rent.
The percent change in personal income growth across all states ranged from 8.4% in Arizona and Montana to 2.4% in Wyoming.
Louisiana’s state personal income decreased 12% at an annual rate in the fourth quarter of 2020 compared to the third quarter. That’s a much sharper drop than the 6.8% dip the rest of the U.S. experienced over the quarter after decreasing 11.3% in the third quarter of 2020.
Across the U.S., the percent change in personal income in Q4 ranged from 16.7% in South Dakota to -16.1% in Rhode Island and Pennsylvania, estimates show.