PA Manufacturers' Association- Press Releases

Archives- November, 2007:

11/19/07

2006 PA ECONOMIC GROWTH ONLY HALF OF U.S. RATE

Ranked 44th in Gross Domestic Product growth,

Pennsylvania loses out on $7.25 billion

From 2005 to 2006, Pennsylvania’s Gross Domestic Product grew at only half the U.S. average, according to the Bureau of Economic Analysis at the U.S. Department of Commerce.

While U.S. Gross Domestic Product grew at 3.4 percent, Pennsylvania’s growth rate was just half that – 1.7 percent. If Pennsylvania had grown at the U.S. average, an additional $7.25 billion in wealth would have been created in the commonwealth last year. Gross Domestic Product is the total value of all goods and services produced in a state or nation over a year’s time.

Among the 50 states, Pennsylvania ranked 44th in 2006 as competitor states enjoyed more robust economic growth. North Carolina ranked 14th in percentage growth in Gross Domestic Product at 4.2 percent, and Virginia placed 22nd in the nation with a growth rate of 3.2 percent.

From 1997 to 2006, U.S. Gross Domestic Product grew by 30.6 percent. In contrast, during the same period Pennsylvania’s Gross Domestic Product grew by just 19.4 percent or more than one-third below average. If Pennsylvania had grown at the U.S. average rate from 1997 to 2006, our economy would be $40.67 billion larger than it is today.

Because of slower growth compared to the rest of the nation, Pennsylvania’s share of the U.S. economy is shrinking – down to 3.9 percent as of 2006.

In the manufacturing sector, Pennsylvania’s decline in non-durable goods was the same as the nation: -0.05 percent. But in durable goods manufacturing, Pennsylvania saw growth of just 0.07 percent, compared with 0.46 percent growth nationally. In other words, U.S. growth in durable goods manufacturing was more than six times faster than in Pennsylvania.

“This is price all Pennsylvanians are continuing to pay for Harrisburg’s misplaced priorities,” said David N. Taylor, Executive Director of the Pennsylvania Manufacturers’ Association. “All of the state government policies that make Pennsylvania less business-friendly than our competitor states – whether it’s chronic overspending, high business taxes, rampant lawsuit abuse, or regulatory overkill – are robbing our citizens and undermining our quality of life. Only principled pro-growth leadership in Harrisburg can improve Pennsylvania’s competitiveness and give our commonwealth a more prosperous future.”

To review all of the data regarding Gross Domestic Product, visit www.bea.gov

Gross State Product 2006

2006 Gross State Product: U.S. map