Louisiana’s economic growth outpacing 40 states

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Louisiana’s gross domestic product jumped 3.2% in the second quarter of 2023, faster than 40 other states, though experts contend the data doesn’t tell the whole story, reports The Center Square.

Figures released by the Bureau of Economic Analysis on Tuesday show Louisiana’s gross domestic product bump of 3.2% in the second quarter outpaced 40 other states, including all states east of the Mississippi River except West Virginia, which climbed 3.6%.

The growth in Louisiana compared to declines in neighboring Mississippi of 1.8% and Arkansas at negative 0.4%, while Texas was up 4.9%. The national average GDP growth was 2.1%. The rate increased in 46 states and the District of Columbia in the second quarter, ranging from 8.3% in Kansas to negative 4.3% in North Dakota.

Pelican Institute economist Vance Ginn told The Center Square there is more to the numbers in Louisiana that’s not obvious in the bureau data. He contends that the real private economy increased by 3.1%.

“That shows there’s still some weakness out there, but the economy was growing,” Ginn said. “The contributions really were from oil and gas activity, mining activity, durable goods in the manufacturing sector and professional business services, while there were a lot of other industries and sectors that declined in the second quarter.”

Ginn said those declines are a “cause for concern” that became apparent in October, when Louisiana experienced job losses.

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