The Bureau of Economic Analysis this morning released new state gross domestic product figures and noted in its press release that through 2010, the ongoing economic recovery appeared widespread. Michigan’s 2009-2010 state GDP growth rate was 2.9 percent, its best since 2002 and 15th best in the country. In the Midwest, the state was surpassed only by Indiana, which grew the third fastest in the country.
However, Michigan’s per-capita state gross domestic product position was disappointing, coming in at 41st among the 50 states, down a long way from last decade, when the state placed 21st in 2000. This state finished in 49th place for real per capita GDP growth from 2000 to 2010, falling by 6.4 percent. Only Georgia lagged behind Michigan, primarily due to its impressive population growth, which “diluted” statewide growth among more people and so lowered the per-person growth rate. In contrast, Michigan lost population over the period.
With the recent improvement in the state’s business tax climate represented by replacement of the hated Michigan business tax with a much lower corporate income tax, and the prospect of other vital reforms to come, next year’s state GDP picture might be even rosier for the Great Lakes State.
The Mackinac Center for Public Policy has recommended literally hundreds of policy reform ideas for making Michigan a more competitive and attractive state. Read 101 of them here.