Recent data from the U.S. Bureau of Economic Analysis (BEA) shows North Dakota leading the nation in the growth of earnings and gross domestic product (GDP), underscoring the state’s strong economy and policies working to drive investment, innovation and business expansion, Gov. Doug Burgum said.
North Dakota experienced the highest growth in real GDP among all 50 states in the first quarter of 2023, surging by 12.4% in the last year – more than six times higher than the nationwide increase of 2%, according to BEA estimates.
North Dakota also led the nation in earnings, which increased at an annualized rate of 12.4% in the first quarter of 2023 – nearly triple the national growth rate of 4.6%.
Personal income increased at an annualized rate of 11%, ranking North Dakota third behind Maine at 11.4% and Nebraska at 11.1%, according to the BEA report.
“North Dakota is wide open for business, and this data confirms that business is good,” Burgum said. “With our low taxes and laser focus on innovation over regulation, we can continue to strengthen and diversify our economy, grow our GDP and generate prosperity for all citizens.”
The BEA noted that agriculture, forestry, fishing and hunting increased in 33 states and was the leading contributor to real GDP growth in 13 states, including the five states with the largest increases: North Dakota, Nebraska, South Dakota, Kansas and Montana.
Increases in farm earnings also was the leading contributor to growth in personal income in four of the five fastest-growing states: Nebraska, North Dakota, Iowa and South Dakota. North Dakota’s increases in personal income and real GDP attributed to oil and gas extraction and mining also were the highest among all states.
“North Dakota has experienced explosive growth in new project investment, which has led to tremendous wage and new employee growth,” state Commerce Commissioner Josh Teigen said. “The state has also seen an influx of workers attracted by the higher-paying jobs, providing a case study for how economic development can drive workforce development.”
The BEA report is available here.