Red states leading US economic growth: Commerce Department report

March 29, 2021

Red states are leading economic growth in the U.S., a new report by the U. S. Commerce Department shows, with South Dakota, Texas and Utah reporting the highest growth.

The report is based on 2020 fourth quarter gross domestic product (GDP) data and February 2021 unemployment rates.

Real GDP increased in all 50 states and the District of Columbia in the fourth quarter of 2020. Real GDP for the U.S. as a whole increased at an annual rate of 4.3%. The percent change in real GDP in the fourth quarter ranged from 9.9% in South Dakota to 1.2% in the District of Columbia.

The top three states in quarter-over-quarter growth were South Dakota (9.9%), Texas (7.5%), and Utah (7.1%). All three have Republican trifecta governments, with Republicans controlling the governor’s offices and both chambers of state legislatures.

Eight of the states in the top 10 are all Republican-led states. The two in the top 10 that are Democratic strongholds are Connecticut, reporting 7% growth, and Delaware, reporting 5.8% growth.