screen-shot-2016-09-20-at-12-29-11-pm-150x150-4479075The latest federal estimates of the 2014-15 change in Gross Domestic Product (GDP) by metropolitan area provide a fresh perspective on upstate New York’s persistent economic weakness.

With a real (inflation-adjusted) GDP gain of 2 percent—good enough to rank 154 out of the nation’s 382 largest metros—Albany-Schenectady-Troy was upstate New York’s fastest-growing area last year, according to preliminary estimates from the Commerce Department’s Bureau of Economic Analysis (BEA). The average GDP growth for all U.S. metro areas was 2.5 percent.

After Albany, the next strongest upstate numbers were from Rochester, at 1.6 percent, and Kingston at 1.7 percent.  The regional GDP didn’t grow at all in the Syracuse area, and ticked up by just 0.9 percent in Buffalo-Cheektowaga-Niagara Falls. At the other extreme, the economies of three upstate metros—Binghamton, Elmira, and Watertown-Ft. Drum—actually got smaller last year, the BEA numbers indicated.  With rankings of 324, 345 and 338, respectively, these three areas were among the worst-performing in the nation.

screen-shot-2016-09-20-at-12-06-58-pm-5378175

Since the recession ended in 2009, the compound annual average GDP growth in all U.S. metro areas has been 1.9 percent a year. Among upstate areas, only Albany-Schenectady-Troy, at 1.1 percent, and Buffalo-Cheektowaga-Niagara Falls, at 1.0 percent, were even able to exceed (barely) even half that figure. On average, Binghamton’s woeful economy has actually gotten smaller every year in real terms, and Watertown-Ft. Drum’s hasn’t grown at all; the remaining upstate metros had estimated real economic growth of less than 1 percent a year.

The GDP data also provide a breakdown of the sectors adding to or subtracting from growth. In the Albany area, roughly one-third of the GDP growth was attributable to the manufacturing sector—with relatively strong growth as well in the Information and Finance-Insurance-Real Estate sectors. In Buffalo, by contrast, the manufacturing sector shrank and other sectors were weaker; virtually all the growth could be attributed to Finance-Insurance-Real Estate. In Rochester, manufacturing output also was weak (durable goods) or declining (in non-durable goods), but both the FIRE and Professional & Business Services sectors contributed strongly to growth.

More detailed figures can be found in the tables here.

You may also like

The Attorney General’s MFCU SNAFU

Attorney General Letitia James' latest fight with the Trump administration focuses on New York's Medicaid Fraud Control Unit, a federally funded agency housed in James' office. On T Read More

Healthcare Revelations in the Enacted Budget Financial Plan

The state financial plan published on June 10 disclosed key information about healthcare revenue and spending that lawmakers had not made public when approving the annual budget two weeks before. Read More

Federal Suit Traces Medicaid Fraud to the Top of NYS Government

The Trump administration's latest salvo against Medicaid fraud takes aim at a different kind of target – two high-ranking New York officials along with a major state contractor. A Read More

It Is Time to Rethink the Regional Greenhouse Gas Initiative

Before budget negotiations, Gov. Hochul warned that unless New York changes its climate plans, New Yorkers could face a $2.26-per-gallon increase in gasoline prices. The reason is the so-called “cap-and-invest” scheme, under which energy companies wou Read More

Healthcare Highlights in the New State Budget

Governor Hochul's focus on affordability seems to have skipped over the healthcare portions of the new state budget. The deal finalized May 27 Read More

Lawmakers Consider Hiking Fees for Filling Prescriptions

UPDATE: The proposal discussed below passed the Assembly Friday evening by an unofficial vote of 133-0. Having previously been approved by the Senate, the bill will head to Governor Hochul's desk for her signature or ve Read More

Lack of Common Sense on Energy in the Budget

Lack of Common Sense on Energy in the Budget Anyone hoping the governor would make even modest, common-sense changes to New York’s disastrous energy policies will be disappointed. The energy portion of the budget is out, and the nons Read More

Budget Deal Reportedly Earmarks $100M for 1199 and Extends MCO Tax

As Governor Hochul and legislative leaders rush to finalize the overdue state budget, outlines of some healthcare-related deals have begun to emerge from the closed-door negotiations. Read More