The latest indicator of Louisiana’s sluggish economy comes in a report released by the Bureau of Economic Analysis today that shows the state’s gross domestic product decreased by 0.9% between the first quarter of last year and this year.
That ranks the Bayou State No. 42 among all states for year-over-year GDP growth through the first quarter. All neighboring states—Texas, Mississippi and Arkansas—and every other state in the Southeast region saw a gain in GDP over the same time period.
Arkansas took the top ranking in the country, with 3.9% GDP growth, while North Dakota saw the biggest decline, at 11.4%. Overall, GDP growth in the U.S. was 1.2% in the first quarter. While gains in the construction, health care and retail industries contributed to overall growth in the U.S., mining, transportation and warehousing declined.
Louisiana saw declines in contributions to its GDP from nearly all sectors, with the hardest hits coming from manufacturing, mining, real estate and leasing, and wholesale trade. However, the construction, nondurable-goods manufacturing and retail trade sectors posted gains.
State economists earlier this year declared Louisiana was in a “state recession,” and businesses have seen a slowdown in recent months. The oil and gas industry has been decimated by the slowdown.
Read the full report.
