(The Center Square) – New Jersey’s economy is larger than the size of its population and its gross domestic product growth was strong in the first and last quarters of last year.
These positive combinations, however, could only push the Garden State to 29th of all states for growth rate in 2021. New Jersey’s 4.9% was a bit behind the national average of 5.7%, an analysis by The Garden State Initiative, a New Jersey Independent. Jersey think tank, said of the recent US Bureau of Economic Analysis report.
Charles Steindel, former chief state economist, analyzed some of USBEA’s findings for The Garden State Initiative. He acknowledged this data as part of a larger pattern for the state, and indeed, for the entire Northeast and Midwest – a “chronic gap of about 30 years with the nation as a whole. “.
The first and fourth quarters recorded growth rates of 7.5% and 7.4%, respectively. New Jersey has the seventh largest economy in the nation, despite being the 11th largest state by population.
Unlike most other states whose economies benefited from government activity in 2021, New Jersey’s growth came “exclusively [from] the private sector,” according to the GSI analysis. The industries that contributed the most to the state’s fourth quarter rise were professional, scientific and technical services; real estate and rental and leasing; and administrative and support and waste management and remediation services. For the year, finance and insurance proved to be the top positive contributors to New Jersey’s economy.
The industries that have most impacted New Jersey’s economic growth have also been heavy hitters elsewhere. Finance and insurance was the “top contributor” to growth for 10 states; and professional, scientific and technical services was the top contributor for seven states.