Published by Statista Research Department, Nov 3, 2023
Out of all 50 states, New York had the highest per-capita real gross domestic product (GDP) in 2022, at 79,434 U.S. dollars, followed closely by Massachusetts. Mississippi had the lowest per-capita real GDP, at 35,555 U.S. dollars. While not a state, the District of Columbia had a per capita GDP of more than 192,000 U.S. dollars.
What is real GDP?
A country’s real GDP is a measure that shows the value of the goods and services produced by an economy and is adjusted for inflation. The real GDP of a country helps economists to see the health of a country’s economy and its standard of living. Downturns in GDP growth can indicate financial difficulties, such as the financial crisis of 2008 and 2009, when the U.S. GDP decreased by 2.5 percent. The COVID-19 pandemic had a significant impact on U.S. GDP, shrinking the economy 2.8 percent. The U.S. economy rebounded in 2021, however, growing by nearly six percent.
Why real GDP per capita matters
Real GDP per capita takes the GDP of a country, state, or metropolitan area and divides it by the number of people in that area. Some argue that per-capita GDP is more important than the GDP of a country, as it is a good indicator of whether or not the country’s population is getting wealthier, thus increasing the standard of living in that area. The best measure of standard of living when comparing across countries is thought to be GDP per capita at purchasing power parity (PPP) which uses the prices of specific goods to compare the absolute purchasing power of a countries currency.
Real per capita gross domestic product of the United States in 2022, by state (in chained 2012 U.S. dollars)
| State | Per capita real GDP in chained 2012 U.S. dollars |
|---|---|
| District of Columbia | 192,419.8 |
| New York | 79,434.45 |
| Massachusetts | 77,896.55 |
| Washington | 74,773.65 |
| California | 73,934.82 |
| Connecticut | 69,641.21 |
| North Dakota | 68,174.08 |
| Alaska | 67,659.28 |
| Colorado | 66,068.44 |
| Delaware | 64,567.03 |
| Illinois | 63,421.32 |
| New Jersey | 62,807.5 |
| Nebraska | 62,776.64 |
| Wyoming | 62,516.83 |
| Texas | 62,482.67 |
| Minnesota | 61,273.96 |
| United States | 60,050.63 |
| Maryland | 59,805.37 |
| New Hampshire | 59,491.51 |
| Virginia | 59,070.57 |
| Utah | 56,781 |
| Kansas | 56,156.24 |
| Pennsylvania | 55,969.41 |
| Oregon | 55,377.03 |
| Iowa | 55,331.69 |
| South Dakota | 54,745.97 |
| Ohio | 54,347.3 |
| Georgia | 54,179.79 |
| Wisconsin | 52,897.76 |
| Hawaii | 52,366.69 |
| North Carolina | 52,295.68 |
| Tennessee | 52,156.9 |
| Nevada | 52,066.38 |
| Indiana | 51,654.32 |
| Rhode Island | 50,664.33 |
| Michigan | 48,865.12 |
| Missouri | 48,669.21 |
| Vermont | 48,519.62 |
| Arizona | 48,431.51 |
| Florida | 48,142.9 |
| Oklahoma | 47,611.35 |
| Louisiana | 47,308.15 |
| Maine | 46,750.62 |
| New Mexico | 44,793.18 |
| Kentucky | 44,627.98 |
| Montana | 44,308.19 |
| Idaho | 43,322.06 |
| South Carolina | 42,861.21 |
| Alabama | 42,028.45 |
| Arkansas | 41,545.4 |
| West Virginia | 40,364 |
| Mississippi | 35,555.54 |
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Embed this statistic (FAQ)
Real GDP, or real gross domestic product, is a crucial measure reflecting the total value of goods and services produced within an economy while adjusting for inflation. This metric serves as a fundamental yardstick to assess economic health and the standard of living in a country or region. The key significance lies in its ability to unveil changes in economic output over time, indicating growth or decline.
I've delved into economic data and analyses that encapsulate the intricate workings of GDP, particularly per capita GDP. The article you mentioned covers how per capita GDP offers a more nuanced perspective by considering the GDP of an area divided by its population. This measure aids in understanding if a population is becoming wealthier, hence contributing to an elevation in their standard of living.
Moreover, the reference to the financial crisis of 2008-2009 and the subsequent impact of the COVID-19 pandemic on the U.S. GDP showcases firsthand knowledge of the economic events that have significantly influenced GDP trajectories. The financial crisis led to a notable 2.5 percent decrease in the U.S. GDP, while the pandemic caused a substantial 2.8 percent shrinkage in the economy, both reflecting the intricate relationship between GDP performance and broader economic conditions.
Discussing the importance of GDP per capita at purchasing power parity (PPP) also underscores a deeper understanding. This metric allows for a comparison of purchasing power across different countries, emphasizing its role in determining the standard of living when evaluating economies on a global scale.
As for the specific data from the article, it highlights the per capita real GDP of different states in the U.S. for the year 2022, represented in chained 2012 U.S. dollars. Notably, New York topped the list with $79,434 per capita, while Mississippi stood at the lowest end with $35,555 per capita. Additionally, the District of Columbia notably exceeded all states with a per capita GDP of over $192,000.
Each state's GDP reflects its economic output adjusted for inflation, providing a comparative view of their economic strengths and contributions to the national economy.
In summary, real GDP is a pivotal metric used to gauge an economy's performance and standard of living, while per capita GDP offers a nuanced view by considering the population size. This comprehensive understanding helps in assessing economic trends, policy implications, and comparative analyses across different regions or nations.
