Minnesota’s per capita GDP growth has lagged the U.S. generally every year since 2014, according to a new report from the Center of the American Experiment released April 2.
In 2014, Minnesota’s level of GDP per capita was $4,669 above that of the United States. Today, it trails by $285, according to a press release regarding the report.
The report, “Accounting for Growth: Measuring the Sources of Per Capita Economic Growth at the State Level,” tracks the decline. Economist and author of the report, John Phelan, said “per capita GDP growth is the most important measure of a state’s economy, and this report sounds a warning that Minnesota is falling behind.”
Phelan’s report explains how, from 2008-2014, Minnesota ranked 17th among the 50 states in real per capita GDP growth. Between 2014 and 2023, it dropped to 37th. The state’s real per capita GDP growth rate rose from an annual average of 0.8% to 1.1%, but the U.S. increased from 0.6 percent to 1.9 percent. Only Wisconsin mirrored Minnesota’s record, the report says.
In a press release, the center explained that while “Minnesota’s GDP per capita is growing, it is not keeping up with the country as a whole, putting us at a competitive disadvantage.”
“Minnesota’s fall in the rankings of growth was driven by the Manufacturing sector, which accounts for the second-largest share of the state’s physical capital stock. The average annual growth rate of physical capital here fell by 2.7 percentage points from 2008-2014 to 2014- 2023, falling by an average -0.2 percent annually in the latter period,” the report explains.
Phelan advised that “Minnesota must shift our focus to improving physical capital, entrepreneurship and innovation if we hope to improve per capita GDP growth and keep up with the competition.”
The full report is available here.
Symone Harms
Symone Harms is a Media Production and Business Marketing student at Bethel University. She is actively involved in The Royals Investment Fund, The 25, theatre, and other leadership positions. She also cohosts Rooted, a podcast dedicated to being rooted in truth, growing in freedom, and prospering in life. A Minnesota native with a passion for storytelling and digital media, she aspires to a career in broadcasting as a news anchor and reporter.
