Mass. economy’s growth fourth in the nation
The Massachusetts economy expanded faster than any other state in New England last year and and ranked fourth in the nation in economic growth, the US Department of Commerce reported today.
The Massachusetts economy grew 4.2 percent in 2010, trailing only North Dakota, which grew 7.1 percent; New York, 5.1 percent; and Indiana, 4.6 percent. The economy of West Virginia, which ranked fifth, grew 4 percent, according to the Commerce Department.
Massachusetts has recovered faster than the nation as whole, due to the strength of the states state’s technology and healthcare industries. The national economy grew 2.6 percent last years, according to the Commerce Department.
The report analyzed states’ gross domestic product, an inflation-adjusted measure of what consumers, businesses, and government spent on goods and services, plus investment and net foreign trade during 2010.
In New England, Vermont ranked second in New England after Massachusetts, with 3.2 percent growth, followed closely by Connecticut (3.1 percent). Rhode Island (2.8 percent) and Maine (2.1 percent) landed third and fourth respectively. New Hampshire ranked last in New England with 1.3 percent growth, and near the bottom nationally.
Massachusetts’ unemployment rate has been significantly lower than the nation’s and dropped to 7.8 percent in April from 8 percent in March, though long-term unemployment remains a problem for many state residents. The state will report unemployment numbers for May next week.
The US Labor Department said last week that the nation’s unemployment rate inched up to 9.1 percent in May, an largely unexpected increase that may be due to a global economic slowdown and slowing demand for US goods, particularly by China.
Economists have said that a global slowdown could affect Massachusetts, where many businesses, particularly in the technology sector, sell goods and services to national and international markets.
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