The chart above shows the annualized nominal gross domestic product (GDP) growth rate when the GDP is priced in US dollars in each EU and US state over the past five years as of the second quarter of 2020 and the growth rate over the past ten years. Twelve states had negative growth over the past ten years while 18 had negative growth over the past five.
Findings
- The difference between the state with the largest annualized five-year growth rate, Ireland, and the state with the smallest, the United Kingdom, is 10.78 percentage points.
- The difference between the state with the largest annualized ten-year growth rate, Ireland, and the state with the smallest, Greece, is 12.02 percentage points.
- The median annualized five-year growth rate in the 28 EU states is 1.48% and the mean 1.35%. The median annualized ten-year growth rate in the 28 EU states is 0.53% and the mean 1.07%.
- The median annualized five-year growth rate in the 50 US states is 0.64% and the mean 0.93%. The median annualized ten-year growth rate in the 50 US states is 2.57% and the mean 2.57%.
- The median annualized five-year growth rate in the 78 EU and US states is 0.83% and the mean 1.08%. The median annualized ten-year growth rate in the 78 EU and US states is 2.28% and the mean 2.03%.
- Of the 78 states, 17 grew faster over the past five years than they did over the past ten years (17 from the EU, 0 from the US), zero had the same annualized growth rate over both periods, and 61 grew slower over the past five years than they did over the past ten years (11 EU, 50 US).
- Some EU drops in GDP growth rate are attributed to currency rate fluctuations.
Caveats
- Data is from the second quarters of 2010, 2015, and 2020.
- The data is seasonally adjusted in current dollars.
- Euros are converted to dollars at an average exchange rate of 1.10 for the second quarter of 2020, 1.11 for the second quarter of 2015, and 1.27 for the second quarter of 2010 according to historic rates listed at the Federal Reserve (see source link below).
- US data comes in an annualized format which the EU does not, thus EU data is annualized by multiplying the quarterly figure by four.
- US growth rates may differ from those provided by the Bureau of Economic Analysis as the BEA's growth rates are based on chained dollars in conjunction with the chain index or the quality index for real GDP. The growth rates listed here are based on nominal GDP.
- All figures are rounded to the nearest hundredth.
Details
The United Kingdom had the worst performance over the past five years with an annualized growth rate of of -4.08%. Ireland had the best performance with an annualized gain of 6.71%.
Over the past ten years, Greece had the worst performance with an annualized growth rate of -4.10% drop in GDP while Ireland had the best performance with an annualized growth rate of 6.71%.
North Dakota had the worst change in its growth rate between its annualized ten-year growth and its annualized five-year growth slowing its rate by 6.21 percentage points. Cyprus had the best change in its growth rate between its annualized ten-year growth and its annualized five-year growth ramping up its rate by 2.84 percentage points.
Cyprus went up 54 spots in the growth rank from having the 73rd largest growth rate over the past ten years to the 28th largest growth rate over the past five years. Conversely, North Dakota went from having the 11th highest growth rate over the past ten years to the 73rd highest growth rate over the past five years. Three states had annualized growth rates in the top five both over the past ten years and over the past five years: Ireland (highest ten-year, highest five-year), Utah (3rd highest ten-year, 4th highest five-year), and Washington (2nd highest ten-year, 5th highest five-year). Three states had growth rates in the bottom five both over both periods: Italy (76th highest ten-year, 74th highest five-year), Alaska (74th highest ten-year, 75th highest five-year), and Greece (78th highest ten-year, 76th highest five-year).
Sources
Eurostat. 2020. "GDP and Main Components." Accessed November 20, 2020. https://appsso.eurostat.ec.europa.eu/nui/show.do?query=BOOKMARK_DS-406779_QID_56657E35_UID_-3F171EB0&layout=TIME,C,X,0;GEO,L,Y,0;UNIT,L,Z,0;S_ADJ,L,Z,1;NA_ITEM,L,Z,2;INDICATORS,C,Z,3;&zSelection=DS-406779UNIT,CP_MEUR;DS-406779INDICATORS,OBS_FLAG;DS-406779S_ADJ,SCA;DS-406779NA_ITEM,B1GQ;&rankName1=UNIT_1_2_-1_2&rankName2=INDICATORS_1_2_-1_2&rankName3=NA-ITEM_1_2_-1_2&rankName4=S-ADJ_1_2_-1_2&rankName5=TIME_1_0_0_0&rankName6=GEO_1_2_0_1&sortC=ASC_-1_FIRST&rStp=&cStp=&rDCh=&cDCh=&rDM=true&cDM=true&footnes=false&empty=false&wai=false&time_mode=NONE&time_most_recent=false&lang=EN&cfo=%23%23%23%2C%23%23%23.%23%23%23.
Federal Reserve. 2020. "Foreign Exchange Rates." Accessed November 23, 2020. https://www.federalreserve.gov/releases/g5/.
US Bureau of Economic Analysis. 2020. "GDP by State." Accessed November 19, 2020. https://www.bea.gov/data/gdp/gdp-state.