Red States Leading US Economic Growth, Commerce Department Report Finds

South Dakota, Texas and Utah were the country’s economic engines in the fourth quarter of last year, according to a report from the US Department of Commerce.

The three states were all tagged as red states led by Republicans — from governors, state senators and Republican state assemblies.

The Commerce department’s report is based on the 2020 fourth quarter gross domestic product (GDP) data and February 2021 unemployment rates, the Center Square reported.

While real GDP — which measures the inflation-adjusted value of goods and services produced in a particular area —  rose in all 50 states and the District of Columbia, the percent change in the last quarter of 2020 ranged from 9.9% recorded in South Dakota to 1.2% in the District of Columbia.

Real GDP for the US as a whole increased at an annual rate of 4.3%. 

The top three states in quarter-over-quarter growth were South Dakota (9.9%), Texas (7.5%), and Utah (7.1%). All three have Republican trifecta governments, with Republicans controlling the governor’s offices and both chambers of state legislatures,” the report said.

Of the remaining seven other states in the top 10 leading the US’ economic growth, five were also Republican strongholds: Tennessee with 6.7% growth, Iowa and Nebraska recording 6.3% growth each, Alaska with 5.8% GDP increase and Missouri with 5.6% growth recorded.

Meanwhile, only two Democrat-held states entered the top 10 with the highest economic growth recorded last year — Connecticut with 7% economic growth rate and Delaware which saw a 5.8% GDP growth for the period.

The report noted that aside from the economic growth, unemployment rates were also lowest in red states. 

South Dakota and Utah, for example, registered the lowest unemployment rates in the country, at 2.9% and 3%, respectively. Meanwhile, Democrat-led states Hawaii and California saw the highest unemployment rates, at 9.2% and 9% during the period.

Pointing to the report, Texas Gov. Greg Abbott also tweeted of Texas’ good growth record.

“The Texas economy expanded at a rapid pace of 7.5% in the last quarter of 2020. That means more jobs & more prosperity for Texans,” the governor said referring to the red state’s performance.

“Only one state — and no large state — had better economic growth than Texas. The Texas economy is on fire,” he added.

Iowa Republican Governor Kim Reynolds also pointed to Iowa’s growth of 6.3% for the period.

ICYMI Iowa is:

→ The #1 state for opportunity
→ GDP growth faster than the national avg.
→ Had kids back in school since August

How else can we keep Iowa moving in the right direction? Take our survey today to let us know!

— Kim Reynolds (@KimReynoldsIA) March 26, 2021

The new report from the Department of Commerce follows one from October showing the third quarter of 2020 as the best quarter in American history under former President Donald Trump, according to a report by The Daily Wire.

Under the former Republican president, GDP oversaw an annual average growth of 2.5% — which already accounted for the huge economic drag of the coronavirus pandemic. Meanwhile, the last three years of the Obama administration saw a 2.3% growth.


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