In this article, we will take a look at the U.S. State with the Fastest-Growing Economy. We have also compiled a full free list of the 20 U.S. States with the Fastest-Growing Economies.
Navigating Global Economic Challenges Post-COVID-19: Insights and Trends
Post the COVID-19 pandemic, the global economy is currently in a recovery phase after the unprecedented declines that incurred between 2019 and 2022. However, this recovery is not as smooth as one would have hoped for. Factors like geopolitical tensions, supply chain disruptions, high inflation, and tightened monetary conditions have been slowing down the recovery process. One of the biggest problems that the world is battling with currently is inflation. However, a few recent developments hint towards a brighter future with headline inflation levels declining to prepandemic levels in some economies. By the end of 2023, global inflation fell to around 2.3% which was a significant decrease from the peak of 9.5% witnessed in the second quarter of 2022. But this progress is limited to a few developed economies like the U.S., China, and Germany. These are the most powerful countries in the world by economy, with GDP levels of $28.8 trillion, $18.5 trillion, and $4.6 trillion, respectively, as of 2024 – we have discussed them in detail in 20 Most Powerful Countries in the World by Economy.
One of the countries that have led this post pandemic recovery is the United States. The country has been capable of preserving its status as the leading global economy. According to the IMF, the GDP of the US was $26.95 trillion in 2023. The value for real gross domestic product (GDP) increased at an annual rate of 1.3 percent in the first quarter of 2024, according to the Bureau of Economic Analysis. The United States is expected to continue climbing at this trajectory as the country is projected to have a real GDP of $32 trillion by the year 2040. For developing countries, however, it is a completely different story. These economies have been recovering but the recovery is quite slow, with inflation in the last quarter of 2023 standing at 9.9%. You can refer to 25 Countries with Developing Economies but Slow Growth Rates, to read about some of these economies in depth. Saudi Arabia and Poland are two of such economies with slowest growth rates amongst the developing economies with GDP levels of $1.07 trillion and $842.2 billion, as of 2023.
While these macroeconomic trends provide us with a broader picture of the economy, the role of major corporations and industry giants in the rebuilding of the economy cannot be overlooked. Among other factors, businesses across major economic regions are driving the growth globally. Companies such as Apple Inc. (NASDAQ:AAPL), and Microsoft Corporation (NASDAQ:MSFT) are two of the most valuable companies in the US. With a market capitalization of $3.311 trillion, as of 13th June 2024, Apple Inc. (NASDAQ:AAPL) is the biggest player in the technology sector. As of 2024, Apple Inc.’s (NASDAQ:AAPL) installed base of active devices has exceeded 2.2 billion globally. Apple reported its financial results for the first quarter of 2024 on February 1, 2024. The revenue came in at $119.58 billion, surpassing estimates by $1.31 billion while earnings per share of $2.18 beat the consensus estimates by $0.08 per share.
Microsoft Corporation (NASDAQ:MSFT) is another leading global technology firm with a market capitalization of $3.283 trillion, as of 13th June 2024. According to the quarterly financial reports released on January 30, 2024 for the second quarter of 2024, Microsoft Corporation (NASDAQ:MSFT) reported earnings per share of $2.93, surpassing estimates by $0.16. Microsoft Corporation’s (NASDAQ:MSFT) revenue was $62.02 billion for Q2 2024, ahead of market consensus by $888.19 million.
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Methodology
For the purpose of this ranking, we acquired data from the Bureau of Economic Analysis on the real GDP for each US state. From the values of the latest year, 2023 and the base year, 2022, percentage change in real GDP was calculated. The states were then arranged in descending order based on their GDP growth rates and the state with the highest percentage change in GDP was picked.
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1. North Dakota
Percentage Change in GDP: 5.87%
Real GDP 2023: $58,015 million
Real GDP 2022: $54,799 million
With a percentage change in GDP of 5.87% over the period 2022-23, North Dakota is the U.S. state with the fastest-growing economy.
North Dakota has been enjoying a robust economy, characterized by a flourishing energy development sector, in addition to strong agriculture, real estate, and government sectors. North Dakota experienced the highest growth in real GDP among all 50 states in the first quarter of 2023, surging by 12.4%, according to North Dakota Governor’s Office. In 2023, the real gross domestic product (GDP) of North Dakota was 58.02 billion U.S. dollars.
You can see the full free list by going to the 20 U.S. States with the Fastest-Growing Economies.
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