Louisiana’s economy grew slightly last year, as the state’s annual gross domestic product increased by 1.1% in 2018, up from a 0.1% increase the year prior.
The state’s GDP growth, however, still falls below the 2018 national average of 2.9%, and ranks 41st in the nation, according to the annual GDP by state report released this morning by the U.S. Bureau of Economic Analysis. Louisiana also falls behind the southeast region, which saw an average 2.6% GDP growth rate in 2018.
The BEA also reports Louisiana’s fourth-quarter GDP rose a modest 1.3% in 2018, falling below the 2.2% national average, but is up from the state’s third-quarter GDP decrease of 0.1%, according to revised numbers. Initially, Louisiana’s third-quarter GDP showed an increase of 1.9% before being revised.
While Louisiana’s economy grew slower than most other states in 2018, the 1.1% uptick is still a far better showing than previous years. Louisiana’s economy actually shrunk slightly in 2015 and 2016, with GDP falling 0.2% and 1.2%, respectively, according to the BEA. The state’s GDP began to climb back up in 2017 with a 0.1% growth rate.
The industries that saw the most growth in Louisiana in 2018 were wholesale trade, up 0.24%; real estate, up 0.23%; and professional, scientific and technical services, up 0.21%. Mining, quarrying and oil and gas extraction fell 0.10% last year in Louisiana, while agriculture dropped 0.02%.
“This latest news marks nine consecutive quarters of GDP growth in Louisiana including increases across many different business sectors and is indicative of the strength of our people and our economy,” said Gov. John Bel Edwards in a statement. “Businesses are opening and expanding and our workforce is developing and improving each day. We know there is still more work to do but as evidenced by this report, we are on track and headed in the right direction.”
