Twin Cities Economy Outpacing Most Big Metros
The Twin Cities economy grew at an above-average rate in 2012, when its gross domestic product (GDP) rose 3.9 percent, up from 2.5 percent in 2011, according to data released Tuesday.
GDP increased in 305 of the studied 381 metropolitan areas across the country in 2012, averaging an increase of 2.5 percent, up from 1.7 percent in 2011, according to the U.S. Department of Commerce. The growth was driven by durable-goods manufacturing, trade (wholesale and retail), and the financial activities industry. Natural resources and mining, however, were not major contributors to growth.
Minneapolis-St. Paul was the 13th largest metro area included in the Commerce Department’s study. Of the 10 largest, the three metro areas with the fastest GDP growth in 2012 were San Francisco (7.4 percent), Houston (5.3 percent), and Dallas (4.3 percent). The 10 largest metro areas accounted for 34 percent of national GDP.
According to the Star Tribune, GDP for the Twin Cities grew in 2012 at its fastest pace in almost a decade. And among the 20 largest metro economies, the Twin Cities had the fifth-fastest GDP growth—beating out the four biggest: New York (1.4 percent), Los Angeles (3.1 percent), Chicago (2.4 percent), and Washington D.C. (0.7 percent).
The Twin Cities’ rapid growth comes as no surprise after Minnesota was ranked as the fifth fastest-growing state economy in June, with a GDP growth rate of 3.5 percent—outpacing the national average of 2.5 percent.
Many smaller metro areas throughout the state fared just as well, if not better, than the Twin Cities. Mankato saw a 4.1 percent GDP growth; St. Cloud, 4 percent; Grand Forks, 3.9 percent; and Rochester, 3.6 percent. The outlier was Duluth, which saw a 2 percent GDP drop.
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