R.I. GDP increases at 2nd fastest annualized rate in N.E. in Q2

RHODE ISLAND real GDP increased at an annualized rate of 7.5% in the second quarter of 2021. / COURTESY BUREAU OF ECONOMIC ANALYSIS

PROVIDENCE – Rhode Island’s annualized growth rate of real gross domestic product in second quarter was the ninth highest rate in the nation and second highest in New England, according to Bureau of Economic Analysis data released Friday.

GDP in Rhode Island increased at an annualized rate of 7.5% in the second quarter, higher than the national annual growth rate of 6.7%. The state’s GDP contracted at an annualized rate of 2.9% in the first quarter.

Like most states, Rhode Island’s GDP growth rate was driven by a sharp increase in the accommodation and food services sector, as well as increases in government and government enterprises, health care and social assistance, and real estate rental and leasing. GDP growth in the state was offset by a decline in retail trade.

Overall, New England GDP increased at an annualized rate of 7.1% in the second quarter. 

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Other New England states’ annualized GDP growth rates in the second quarter:

  • Massachusetts: 8%, No. 7 in the U.S.
  • Vermont: 6.5%, No. 15.
  • Connecticut: 5.9%, No. 29.
  • New Hampshire: 5.6%, No. 32.
  • Maine: 5.5%, No. 36.

Nationally, Nevada had the highest annual rate of increase among all states in the second quarter, increasing at a rate of 9.7%, followed by Hawaii at 8.9%.

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  1. Encouragingindicator since GDP growth is a better indicator of the health of the economy as opposed to unemployment %. Interesting to note that California’s growth outpaced that of both Texas and Florida, two states that did not strongly lock down during the pandemic. So much for that myth.