Dakotas Top MN For 4-Yr. GDP, Population Growth
Minnesota’s neighbor to the west, North Dakota, topped a recent Bloomberg list based on its combination of gross domestic product (GDP) and population growth—while Minnesota landed dead center at 25th.
The list compared states’ population and GDP growth between 2008 and 2012, taking the average rank of both factors to compile the overall standings.
Following North Dakota were Texas, Alaska, Washington, D.C., and Washington. Arizona took the last place slot with 0.82 percent population growth and a GDP loss of 1.11 percent; Rhode Island, Mississippi, Michigan, and New Jersey, rounded out the bottom five.
Minnesota ranked 21st for GDP growth with an increase of 1.10 percent over four years, and it ranked 28th for population growth with an increase of 3.04 percent over four years. South Dakota ranked 17th, just head of Minnesota.
North Dakota managed to get the top ranking for both categories, with 9.06 percent population growth and 7.8 percent GDP growth, over the past four years. The next highest population growth was in Wyoming at 8.21 percent, but that state ranked only 21st overall because of its GDP loss of 0.05 percent.
For GDP growth, Texas ranked second behind North Dakota but was still almost 5 percent lower at 2.99 percent growth.
Michigan saw the biggest drop in population with a loss of 1.2 percent. Only two other states saw a population loss—Illinois (0.2 percent) and Rhode Island (0.05 percent). Nevada was at the bottom of the GDP ranking with a loss of 1.41 percent.
Click here to view Bloomberg’s entire list.
Although Minnesota ranked only 21st for GDP growth over the last four years, it has been well above average for its more recent GDP growth. The state was ranked as the fifth fastest-growing economy based on GDP growth during 2012, according to data from The Bureau of Economic Analysis.
Minnesota’s GDP had a growth rate of 3.5 percent during 2012, above the national average of 2.5 percent, although still well behind North Dakota, which was the fastest-growing state at 13.4 percent.
Meanwhile, a September report projected that the Twin Cities population will grow 31 percent over the next three decades. While both Minneapolis and St. Paul saw population declines between 2000 and 2010, the Metropolitan Council expects Minneapolis to add about 105,000 residents and St. Paul to add about 54,000 between 2010 and 2040.
In fact, from 1950 to 2012, Minneapolis’ population dropped from 521,718 to 392,880. Minneapolis Mayor R.T. Rybak wants to bring the city back to its former glory, and earlier this month set a goal for Minneapolis to reach 500,000 people by 2025, more than 10,000 higher than the Met Council projected.
Some argue the best way to increase the city’s population is a reduction in property tax burdens. A recent study of business tax climates by the Tax Foundation ranked Minnesota the 33rd most favorable state for property taxes. Property tax rates were actually the state’s best ranking out of all the taxes the foundation examined—Minnesota ranked 47th overall after factoring in its harsher corporate, income, sales, and unemployment insurance tax rates.