R.I. GDP up 5.3% over year, highest increase in New England

RHODE ISLAND real GDP increased 1.3 percent from the fourth quarter of 2017 to the first quarter of 2018 and 5.3 percent year over year to an annual rate of $61.3 billion, accounting for 0.3 percent of total U.S. GDP. / COURTESY BUREAU OF ECONOMIC ANALYSIS
RHODE ISLAND real GDP increased 1.3 percent from the fourth quarter of 2017 to the first quarter of 2018 and 5.3 percent year over year to an annual rate of $61.3 billion, accounting for 0.3 percent of total U.S. GDP. / COURTESY BUREAU OF ECONOMIC ANALYSIS

PROVIDENCE – Rhode Island’s real Gross Domestic Product increased 1.3 percent in the first quarter of 2018, seasonally adjusted, the fourth-highest quarterly growth rate in New England and 35th-highest among the 50 states, according to the Bureau of Economic Analysis Tuesday. United States real GDP increased at 1.8 percent in the first three months of the year.

Year over year, Rhode Island’s GDP increased 5.3 percent from an annual rate of $58.2 billion, the highest growth rate among the New England states. Other states’ year-over-year real GDP growth rates were:

  • Connecticut – 5 percent
  • Massachusetts – 4.5 percent
  • New Hampshire – 4 percent
  • Maine – 3.7 percent
  • Vermont – 3.5 percent

Rhode Island’s real GDP for the quarter amounted to an annual rate of $61.3 billion, which accounted for 0.3 percent of total U.S. GDP.

Washington ranked No. 1 in the country, with a 3.6 percent growth rate in the first quarter. Ranking last in the nation was North Dakota, which saw its GDP fall 0.6 percent in the first three months of 2018.

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The sectors that provided the largest percentage point contribution to the first quarter in Rhode Island were: Real estate and rentals at 0.33 percentage points, finance and insurance at 0.24 percentage points, and health care and social assistance at 0.21 percentage points. The largest drag on the state GDP in the quarter were recorded by the arts, entertainment and recreation, and accommodation and food services sectors, which each contracted 0.09 percentage points.

Other New England first-quarter data:

New England GDP increased at a rate of 1.5 percent.

Vermont was shown to have the highest Real GDP growth rate in the New England region in the first quarter at 2.6 percent, which ranked No. 8 in the country.

Following Vermont, Connecticut was reported to have the second-highest real GDP growth rate in the region at 1.6 percent, which ranked No. 23 in the country. Massachusetts had the third-highest New England real GDP growth in the quarter at 1.5 percent, which ranked No. 29 in the country.

Following Rhode Island at No. 4 in the region were New Hampshire (1.3 percent), ranking No. 36 in the nation, and Maine at 0.6 percent growth, ranking No. 46 in the United States.

New England GDP in the first quarter totaled $1.1 trillion or 5.3 percent of total U.S. GDP. Year over year, New England GDP increased 4.5 percent from $1 trillion.

Massachusetts GDP:

Bay State GDP in the first quarter of 2018 was $542.2 billion, seasonally adjusted, from $519.1 billion in the first quarter of 2017. Massachusetts first-quarter GDP accounted for 2.7 percent of total U.S. GDP.

Chris Bergenheim is the PBN web editor.