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Original article URL: http://bridgemi.com/2013/06/michigan-economy-grew-again-in-2012-but-pace-was-well-off-1011-rates/

Economy & competitive position

Michigan economy grew again in 2012, but pace was well off ’10,’11 rates

Kurt Metzger is director of Data Driven Detroit, a nonprofit in Detroit established by foundations to build greater capacity for people to work together, and improve lives and communities affiliated with the Michigan Nonprofit Association. He was research director for United Way for Southeastern Michigan from 2005 to 2008 and before that, was a director at the Center for Urban Studies at Wayne State University.

Kurt Metzger is director of Data Driven Detroit, a nonprofit in Detroit established by foundations to build greater capacity for people to work together, and improve lives and communities affiliated with the Michigan Nonprofit Association. He was research director for United Way for Southeastern Michigan from 2005 to 2008 and before that, was a director at the Center for Urban Studies at Wayne State University.

Real gross domestic product (GDP) increased in Michigan and 48 other states and the District of Columbia in 2012, according to new statistics released today by the U.S. Bureau of Economic Analysis. Durable-goods manufacturing, finance and insurance and wholesale trade were the leading contributors to real U.S. economic growth.

Michigan, where manufacturing was the leading growth sector, posted the 18th highest growth rate in 2012. Michigan’s rate of growth, 2.2 percent, was slightly below the national average and well below its revised growth rate of 3.5 percent in 2011 and 4.9 percent in 2010.

U.S. real GDP by state grew 2.5 percent in 2012 after a 1.6 percent increase in 2011.

When viewed by total real domestic state product, Michigan’s $400.5 billion ranks 13th, well below its population ranking of ninth. Table 1 illustrates which sectors helped grow the GDP – durable-goods manufacturing, finance and insurance, nondurable goods, etc. – and which ones pulled it downward – real estate and government.

Table 1. Contribution to Michigan’s 2012 GDP by Sector

Metzger 6-6 slide gdp

 

 

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