California sees nation’s third-best economic growth in 2017

LOS ANGELES
November 27, 2017 5:01am

•  GoBankingRates examines unemployment rate, income growth and GDP growth

•  And the No. 1 is… Really?

California has the nation’s third-best economic growth this year among the 50 states, according to a new analysis by the personal financial website GoBankingRates.com, which is based in Los Angeles.In California, the information industry easily outpaced all other industries, contributing 0.71 percentage points to California’s GDP. The finance, insurance, real estate, rental and leasing industry contributed only 0.34 percentage points.

West Virginia saw the most economic growth of any U.S. state in 2017, the study says.

Nevada ranks No. 2 in the country, with the second-highest GDP growth rate and the third-biggest drop in unemployment. The state falls short when it comes to personal income growth, with only a 2.39 percent increase.

To identify areas with the strongest economies, GOBankingRates analyzed GDP growth, personal income growth and percent decrease in overall unemployment rate. States were given a score based on their performance in each category. The scores were added up to determine the states with the strongest economies moving into 2018.

Top Five States with the Strongest Economies in 2017
1. West Virginia

GDP growth: 6.84 percent

Personal income increase: 2.75 percent

Unemployment rate decrease: 1.3 percentage points

2. Nevada

GDP growth: 6.38 percent

Personal income increase: 2.39 percent

Unemployment rate decrease: 1.2 percentage points

3. California

GDP growth: 4.9 percent

Personal income increase: 3.4 percent

Unemployment rate decrease: 0.7 percentage points

4. Pennsylvania

GDP growth: 5.34 percent

Personal income increase: 3.14 percent

Unemployment rate decrease: 0.6 percentage points

5. Indiana

GDP growth: 3.55 percent

Personal income increase: 3.9 percent

Unemployment rate decrease: 0.8 percentage points

Kentucky ranked No. 16 on the list of strongest economies due to high GDP growth. However, the state has low personal income growth and saw an unemployment decrease of only 0.1 percent.

Indiana saw the highest boost in personal income of any state at nearly 4 percent. The state as a whole ranks No. 5 on the list.

Drilldown

 

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