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15 states with the fastest growing economies

15 states with the fastest growing economies

Friends stock / Shutterstock.com Editor's note: This story originally appeared on Filterbuy.Since the beginning of the year, the US stock market has

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Editor’s note: This story originally appeared on Filterbuy.

Since the beginning of the year, the US stock market has suffered astonishing losses. Inflation has dominated news for almost a year, with the Consumer Price Index rising at the fastest pace in decades.

The US Federal Reserve has launched a series of interest rate hikes to cool demand in the economy, which should reduce inflation but also send the economy into a recession. World events such as Russia’s military invasion of Ukraine and a recent spate of COVID-19 cases in China could continue to disrupt global supply chains and make it harder to find certain goods.

Amid all this news, consumer confidence in the economy has fallen in recent months and remains below pre-pandemic levels.

But according to many other key indicators, the overall economic picture is strong. Real GDP grew by 5.7% over 2021, driven by strong consumer demand and a recovery effect for many industries after a difficult 2020. The unemployment rate fell to 3.6%, just above the pre-pandemic level of 3 , 5%, and the tight labor market helped push workers’ wages higher. Thanks to increased savings and strong investment returns during a large part of the pandemic, more entrepreneurs had the resources to start new businesses.

Researchers at Filterbuy combined these factors to determine the states with the fastest growing economies between 2020 and 2021. The data used in this analysis are from the U.S. Bureau of Economic Analysis, the U.S. Bureau of Labor Statistics, and the U.S. Census Bureau. Researchers calculated a composite score based on the following factors, all weighed equally:

  • GDP growth
  • New business grows
  • Employment growth
  • Per capita income growth
  • Population growth

Here are the states with the fastest growing economies.

15. Maine

Portland, Maine
Jo Ann Snover / Shutterstock.com

Compound score: 56.74

GDP growth: + 9.8%

New business growth: + 26.6%

Employment growth: + 3.7%

Per capita income growth: + 6.5%

Population growth: + 0.7%

14. Kentucky

Cincinnati
Anne Kitzman / Shutterstock.com

Compound score: 57.96

GDP growth: + 10.3%

New business growth: + 25.9%

Employment growth: + 3.2%

Per capita income growth: + 7.8%

Population growth: + 0.1%

13. New Hampshire

Manchester, New Hampshire
Sean Pavone / Shutterstock.com

Compound score: 65.70

GDP growth: + 12.1%

New business growth: + 19.9%

Employment growth: + 3.7%

Per capita income growth: + 8.3%

Population growth: + 0.7%

12. Arkansas

Fayetteville, Arkansas
shuttersv / Shutterstock.com

Compound score: 65.74

GDP growth: + 10.6%

New business growth: + 28.0%

Employment growth: + 2.8%

Per capita income growth: + 7.7%

Population growth: + 0.4%

11. South Carolina

Spartanburg, South Carolina
Kevin Ruck / Shutterstock.com

Compound score: 66.10

GDP growth: + 10.3%

New business growth: + 35.3%

Employment growth: + 3.1%

Per capita income growth: + 6.6%

Population growth: + 1.2%

10. Indiana

Indianapolis, Indiana
Alexey Stiop / Shutterstock.com

Compound score: 69.40

GDP growth: + 12.0%

New business growth: + 25.7%

Employment growth: + 3.2%

Per capita income growth: + 8.6%

Population growth: + 0.3%

9. Utah

motors in Utah
Bob Pool / Shutterstock.com

Compound score: 73.88

GDP growth: + 11.5%

New business growth: + 22.7%

Employment growth: + 4.9%

Per capita income growth: + 7.2%

Population growth: + 1.7%

8. Tennessee

Memphis Tennessee
Sean Pavone / Shutterstock.com

Compound score: 73.88

GDP growth: + 13.2%

New business growth: + 24.8%

Employment growth: + 3.4%

Per capita income growth: + 8.0%

Population growth: + 0.8%

7. Texas

El Paso, Texas
BrianWancho / Shutterstock.com

Compound score: 75.92

GDP growth: + 11.8%

New business growth: + 27.7%

Employment growth: + 3.5%

Per capita income growth: + 7.7%

Population growth: + 1.1%

6. South Dakota

Rapid City, South Dakota
Sopotnicki / Shutterstock.com

Compound score: 77.56

GDP growth: + 11.7%

New business growth: + 28.5%

Employment growth: + 3.1%

Per capita income growth: + 8.6%

Population growth: + 0.9%

5. North Carolina

Durham, North Carolina
Sean Pavone / Shutterstock.com

Compound score: 79.58

GDP growth: + 11.0%

New business growth: + 28.2%

Employment growth: + 4.2%

Per capita income growth: + 8.0%

Population growth: + 0.9%

4. Florida

Pensacola Florida
Matt Buikema / Shutterstock.com

Compound score: 80.40

GDP growth: + 10.9%

New business growth: + 27.3%

Employment growth: + 4.6%

Per capita income growth: + 8.3%

Population growth: + 1.0%

3. Idaho

Idaho
Charles Knowles / Shutterstock.com

Compound score: 80.44

GDP growth: + 12.5%

New business growth: + 28.0%

Employment growth: + 5.3%

Per capita income growth: + 6.7%

Population growth: + 2.8%

2. Montana

Livingston, Montana
Nick Fox / Shutterstock.com

Compound score: 80.80

GDP growth: + 15.1%

New business growth: + 26.8%

Employment growth: + 4.6%

Per capita income growth: + 6.9%

Population growth: + 1.6%

1. Nevada

Reno, Nevada
Andrew Zarivny / Shutterstock.com

Compound score: 86.12

GDP growth: + 12.9%

New business growth: + 30.7%

Employment growth: + 6.8%

Per capita income growth: + 7.5%

Population growth: + 1.0%

Methodology

Work on computer data analysis on a laptop
Gorodenkoff / Shutterstock.com

The data used in this analysis are from the U.S. Bureau of Economic Analysis GDP and Personal Income Data, the U.S. Bureau of Labor Statistics Current Employment Statistics, and the U.S. Census Bureau’s Business Formation Statistics. To determine the states with the fastest growing economies between 2020 and 2021, researchers calculated a composite score based on the following factors, all weighed equally:

  • GDP growth
  • New business grows
  • Employment growth
  • Per capita income growth
  • Population growth

In the event of a tie, the state with the higher GDP growth is ranked higher.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click on links in our stories.

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