Arkansas’ third quarter real gross domestic product (GDP) of $149.105 billion grew at an annual rate of 6.9%, the most of any U.S. state, according to Friday’s (Dec. 20) report from the U.S. Bureau of Economic Analysis (BEA).
Arkansas was also tops in growth of third quarter personal income, which is tied to GDP shifts. The numbers are preliminary and subject to change.
According to the BEA report, real GDP was up in 46 states in the third quarter of 2024, with the percent change ranging from 6.9% at an annual rate in Arkansas to a 2.3% decline in North Dakota. Personal income, in current dollars, increased in 49 states, with the percent change ranging from 5.4% at an annual rate in Arkansas to a decline of 0.7% in North Dakota.
U.S. GDP grew at an annual rate of 3.1% in the third quarter, and real GDP increased in 16 of the 23 industry groups the BEA tracks for the state estimates.
“Agriculture, forestry, fishing, and hunting, which increased in 25 states, was the leading contributor to growth in five states including Arkansas, Alabama, and Mississippi, the states with the largest increases in real GDP,” noted the BEA report. “In contrast, this industry was the leading offset to growth in 14 states including North Dakota, Nebraska, South Dakota, and Montana, the only states with declines in real GDP.”
The GDP sector of Agriculture, Forestry, Fishing, Hunting grew 2.76% in Arkansas, the most of any sector in the state. Retail Trade in Arkansas was up 1.45%, Health Care and Social Assistance was up 0.58%, and Durable Goods Manufacturing was up 0.56%. Declining sectors in Arkansas during the third quarter were Construction, down 0.20%, and Accommodation and Food Services, down 0.17%.
Greg Kaza, an economist and director of the Arkansas Policy Foundation, said Arkansans should celebrate the top billing.
“Arkansas ranks first in the nation in today’s report. With apologies to San Francisco 49ers fans, Arkansas isn’t 49th and hasn’t been for years. The applicable term in today’s report is, ‘We’re number one.’ Let us celebrate this economic news,” Kaza noted.
Earnings increased in 49 states, while growing 3.8% nationally. The percent change in earnings ranged from 10.5% in Arkansas to a decline of 1.9% in North Dakota. In terms of personal income, the Farm Earnings sector was up 2.78% in Arkansas, with Healthcare and Social Assistance second with a 0.67% gain.
Following are other details from the BEA report.
• Retail trade, which increased in all 50 states, was the leading contributor to growth in 39 states including Idaho, the state with the fourth-largest increase in real GDP.
• Farm earnings, which increased in 33 states, was the leading contributor to the increase in Arkansas, Alabama, Delaware, and Mississippi, the four states with the largest growth in personal income. In contrast, a decrease in farm earnings was the leading offset to growth in North Dakota, the only state with a decrease in personal income.
• Transfer receipts increased in all 50 states, while growing 5.2% nationally. The percent change in transfer receipts ranged from 7.8% in South Dakota to 1.6% in New Mexico. The increase in transfer receipts in South Dakota was due in part to an increase in Medicaid benefits, which increased 22%.
• Property income decreased in all 50 states, while declining 0.7% nationally. The percent change ranged from a decline of 0.2% in West Virginia to a decline of 1.3% in Arkansas, Nebraska, and South Dakota.
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