On June 11, 2014 the U.S. Bureau of Economic Analysis released its initial Gross Domestic Product (GDP) by State numbers for 2013 and South Dakota’s economy was the fourth fastest growing state economy in the nation.
- From 2012 to 2013 South Dakota’s total GDP increased from $42.464 billion to $46,732 billion, a 6.8% one year growth rate.
- Nationally the economy grew by 3.47%.
- Only North Dakota, Wyoming and Idaho grew at a faster rate than South Dakota.
Over the last five years South Dakota’s GDP has increased by 25% compared to the national average growth rate of 14.11%. Only North Dakota and Nebraska have grown at a faster rate than South Dakota over the last five years.
South Dakota’s economic growth was led by the agricultural sector which experienced a 33% one year growth rate, this partly due to a rebound from state-wide drought in 2012. Finance (banking), health care, and the wholesale sector also experienced one year growth rates in excess of 5%.
GDP is comprised of business earnings before income taxes and depreciation, total compensation paid to employees, and excise taxes. The BEA reports GDP in both chained dollars (inflation adjusted) and in constant dollars, with constant dollars being used above.