Connecticut’s economy grew 2.4% in 2022, overcoming a sluggish fourth quarter as most industrial sectors posted annual productivity gains.
The state’s GDP growth was the 17th best in the country based on the most recent economic report from the US Bureau of Economic Analysis.
GDP grew in 42 states as the US economy expanded 2.1%. The New England regional economy grew 1.9%.
Vermont had the best growth in the region, growing 2.8% — the 10th best nationwide.
After Connecticut, Massachusetts’ economy grew 2%, followed by Maine (1.8%), Rhode Island (1.5%) and New Hampshire (0%).
‘Right direction’
“We’re moving in the right direction,” said Chris DiPentima, President and CEO of CBIA. “Demand for goods and services remains strong.
“I can only imagine what the growth rate would be if we weren’t dealing with a labor shortage.”
In January, Connecticut had 97,000 job openings — 39% more than February 2020 — while the labor force declined by 42,800 in the past 12 months alone.
Connecticut’s economic growth was the 17th best in the country in 2022. Source: US Bureau of Economic Analysis.
DiPentima said Connecticut employers continued to innovate and find ways to increase productivity amid significant workforce challenges.
“They keep doing things to produce output even though they can’t find workers,” DiPentima said.
“Filling the state’s 97,000 job openings by making the state more affordable and expanding career opportunities is key to unlocking Connecticut’s true economic potential.”
industry growth
Connecticut’s $321.8 billion economy accounts for 25% of New England’s $1.3 trillion GDP and is the second largest in the region after Massachusetts ($688.4 billion).
Fourteen of the 22 industry sectors tracked by BEA saw productivity gains in 2022, led by the finance and insurance sector, which grew 0.69%.
Administrative Services grew 0.54%, followed by Information (0.53%), Professional Services (0.4%), Healthcare (0.36%), Arts, Entertainment & Recreation (0.23%), Management (0 ,22%), wholesale trade (0.2%), lodging and food services (0.17%), education services (0.13%), durable goods manufacturing (0.09%), consumer goods manufacturing (0.07% ) and federal government (0.01%).
The agriculture and mining sectors saw no growth in 2022. Retail was the worst performer of all sectors, shrinking 0.46%.
Construction contracted 0.32%, followed by state and local government (-0.23%), real estate (-0.09%), military (-0.05%) and transportation (0.03%).
Idaho’s economy grew 4.9% in 2022, leading all states, followed by Tennessee (4.3%), Florida (4%), Nevada (3.7%) and Texas (3.4%).
Alaska’s GDP fell 2.4%, the worst of the 50 states, followed by Louisiana (-1.8%), Iowa (-1.5%), North Dakota (-1.3%) and Oklahoma (-1 %).
Personal Income
Connecticut’s personal income grew 2.6% last year — after several years of flat growth — ranked 27th nationwide.
The state’s per capita personal income was $84,972 in 2022, the highest in the country. The US average was $65,423, with a growth rate of 2.4%.
The New England region — with an average per capita income of $79,326 — saw average growth of 2%, led by Maine (2.6%) and Connecticut.
Connecticut’s personal income grew 2.6% last year after several years of stagnant growth.
Personal income rose 2.5% in New Hampshire, followed by Vermont (2.4%), Massachusetts (1.5%) and Rhode Island (1.4%).
Idaho saw the fastest growth in the country with a 6.2% increase in personal income, followed by Colorado (5.4%), Texas (5.3%), Alaska (4.8%) and Utah (4.7 %).
Louisiana had no growth, the worst of the 50 states, followed by Hawaii (0.3%), Michigan (0.4%), California (0.4%) and Mississippi (0.5%).
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