New York falls below $1 trillion in gross state product; 38 states decline
New York no longer has a trillion-dollar economy.
The state suffered a 4.3 percent decline in its gross state product in 2009, pushing it below the $1 trillion mark, according to a report issued Thursday morning by the U.S. Bureau of Economic Analysis.
Gross state product (GSP) measures the total output of goods and services during a given year. It’s the state-level equivalent of the nation’s gross domestic product (GDP).
New York’s GSP topped $1 trillion from 2006 to 2008, but dropped to $981 billion in the recessionary year of 2009.
The state’s decline was the third-worst in the country. Only Nevada (down 6.4 percent) and Michigan (down 5.2 percent) suffered bigger economic drops.
Declines were common across the nation, with the gross state product falling in 38 states between 2008 and 2009. Federal analysts placed the blame on sluggishness in the durable-goods manufacturing and construction sectors.
Two states still have GSPs in excess of $1 trillion: California ($1.74 trillion) and Texas ($1.05 trillion).
The Business Review