The Conference of Mayor’s Metro Economies Report, just released at portends moderate economic growth for some areas of the country and further deterioration for other parts of the country.
While the U.S. economy as a whole is suffering from a paltry 2% projected growth in 2014 some parts of the country are experiencing a comparative boom in their GDP. The report states that , "Eight of the world’s 40 highest producing economies are US metropolitan areas.”
With New York City alone ranking as number 13. Metropolitan areas continued to be the beating heart of the US economy in 2013. They were home to 84% of the nation’s population, 86% of total non-farm employment, 87% of total real income, 90% of new housing starts, and 90% of real gross domestic product.
And they are expanding: total metropolitan employment climbed by 1.9% last year, real gross product increased by 2.1%, and metropolitan area population rose by 0.9%, with each growth rate faster than that of the U.S. Led by $1.4 trillion in New York, the gross metropolitan product (GMP) of 33 US metros surpassed $100 billion in 2013, as Austin, Columbus, and Sacramento joined that elite club.
In 2014 it is projected that Las Vegas and Nashville will as well. Combined, the nation’s 10 highest-producing metro economies surpassed the output of the 37 lowest-producing states in 2013. New York, Los Angeles, and Chicago would all rank in the top ten among state economies.
Texas and Florida dominated 10 of the Top 20 metro economies. While the growth in states across the South may appear black and white as rebounding from new lows the growth in many California metro areas cries for examination. The most common theme seen in California has three parts.
One part; the lows of the CA real estate markets were historic so there is much room for growth. Secondly, many California communities have committed to true reforms that were controversial. And lastly, The confidence in California has begun to return after the state government began to deal constructively with their budgetary woes.
Interestingly, at the end of 2013 Bismarck and Fargo ND had the lowest unemployment rates of 2.5% and 3.0%, respectively. This trend in the mid-swath of the country has continued over the last 3-4 years because of the regions embrace of the new American gold rush; namely fracking. The jobs created in this sector are good paying and still growing.