Capping a week in which Governor Cuomo touted his “successful economic agenda,” newly released federal estimates show New York’s economy barely grew at all during the third quarter of 2019, ranking near the bottom of a 50-state list.

Adjusted for inflation, the Empire State’s gross domestic product was up just 0.5 percent on a seasonally adjusted annual basis—far below the national growth rate of 2.1 percent, according to data from the Bureau of Economic Analysis. As shown in the map below, the only states with slower growth were Delaware (0.0 percent), Hawaii (0.4 percent) and West Virginia (rounding to the same 0.5 percent as New York).

New York also under-performed BEA’s five-state (plus District of Columbia) Mideast region, where growth averaged 1.2 percent, as well as neighboring New England, which matched the national growth rate of 2.1 percent. The five Great Lakes states, which economically share much in common with upstate New York, also had average growth of 2.1 percent.

screen-shot-2020-01-10-at-9-21-31-am-1024x678-7673177

On a sector-by-sector basis, New York notably diverged from the national trend in manufacturing, which contributed 0.47 percentage points to the U.S. GDP growth. In New York, manufacturing industries contributed just 0.11 percentage points. But the main reason for New York’s weak relative performance was in the crucial finance and insurance sector, which subtracted 1.28 percentage points from economic output. The finance and insurance contribution to GDP also declined nationally, but by a much lower rate of 0.42 percent.

The latest BEA estimates also indicate that, on an annual basis, New York’s Real GDP growth in 2018 was 1.2 percent, less than half the national growth of 2.9 percent. New York ranked 45th out of 50 states for the year.

About the Author

E.J. McMahon

Edmund J. McMahon is a senior fellow at the Empire Center.

Read more by E.J. McMahon

You may also like

NYC Pension Funds’ Return Was a Subpar 4.4% in FY 2020

New York City's five municipal public pension funds ended their 2020 fiscal year with a net investment gain of 4.44 percent, well below their 7 percent assumed rate of return. That shortfall, reflecting the pandemic recession and its impact on financial markets, is expected to drive up the city's annual tax-funded pension costs by up to $200 million within the next three years. Read More

New York Has Widened Its Lead in Per-Capita Spending on Medicaid

New York's per-capita Medicaid spending soared to more than double the nationwide rate in 2018, widening its gap with the other 49 states. Read More

State Pension Fund Lost Money in 2020, Pointing to Higher Costs Ahead

New York State’s biggest public pension lost money on its investments during the fiscal year that ended March 31—a completely unsurprising result, given the coronavirus crisis and its impact on financial markets in early spring. Read More

New York’s Medicaid Enrollment Surges to an All-Time High

New York's Medicaid program is growing at its fastest rate in six years, with a quarter-million additional enrollees landing in the safety-net health plan during the first three months of the coronavirus pandemic.  Read More

Lawmakers Look To Dump More Public Cash On Teamsters

State lawmakers this week moved to make public construction more expensive in a bid to steer work to one of New York’s struggling construction unions. Read More

In Slow Recovery, NY’s Job Drop as of June was Still Among the Worst in U.S.

While New York's economy continued to ever-so-slowly recover in June, the Empire State's year-to-year percentage decline in private employment since the pandemic lockdown remained the worst in the continental U.S., according to the latest payroll establishment data from federal and state agencies. Read More

New York’s Health Premiums Remain Among the Highest in the U.S.

The average cost of New Yorkers' health benefits increased by less than the national average in 2019 but remained among the highest in the U.S., according to recently published federal data. Read More

New York’s Medicaid Roller Coaster Takes an Unusual Turn

The state's Medicaid spending was significantly lower than projected in the first quarter, but that's not necessarily a positive sign for state finances. Read More

Subscribe

Sign up to receive updates about Empire Center research, news and events in your email.

CONTACT INFORMATION

Empire Center for Public Policy
30 South Pearl St.
Suite 1210
Albany, NY 12207

Phone: 518-434-3100
Fax: 518-434-3130
E-Mail: info@empirecenter.org

About

The Empire Center is an independent, non-partisan, non-profit think tank located in Albany, New York. Our mission is to make New York a better place to live and work by promoting public policy reforms grounded in free-market principles, personal responsibility, and the ideals of effective and accountable government.