From Deseret News archives:
Economy still surging in Utah
In fact, the entire Rocky Mountain region — with the exception of Colorado — has some of the fastest expanding economies, according to a report released Tuesday by the U.S. Bureau of Economic Analysis about gross state products. Overall, Utah had an increase of 5.8 percent in its GSP, the sixth highest in the country.
The GSP, which is the approximate equivalent of each state's share of the gross domestic product, measures the output of services and goods produced within the state. The GDP and GSP are generally considered the most comprehensive measures of economic activity.
The numbers reflect other indicators, including the continually expanding state budget surplus, which demonstrate the state's economic growth.
"That does parallel the data we've been seeing in terms of growth," said Chris Roybal, senior economic adviser for Utah Gov. Jon Huntsman Jr. "We're seeing growth in a number of areas," including the high-tech and energy sectors.
With the exception of Virginia and Florida, eight of the 10 fastest growing economies were west of the Mississippi. The fastest growing was Arizona, at 8.7 percent.
Louisiana was the only state to see a reduction in its economic activity, primarily due to hurricanes Katrina and Rita. States in the Midwest that rely heavily on manufacturing had only minimal growth.
Large concentrations in financial or information/technology industries were generally to credit for the growth in the fastest-growing states, according to the report.
Another major factor was population growth, since six of the top 10 states were also among the fastest growing, including Utah.
Roybal said that based on early numbers from this year, that type of economic expansion probably will continue. Because Utah has a young, educated work force and is centrally located, companies are continually looking to expand or relocate to the state.
"I think we're going to see the benefits of this for a number of years," Roybal said. "Our sense is that things are tracking in 2006 at a similar pace as they did in 2005."
The GSP is for 2005 and used results compiled earlier this year about state-by-state economic activity. The full report can be found at www.bea.gov.
E-mail: jloftin@desnews.com
