by Jon Sanders
Director of the Center for Food, Power, and Life, Research Editor, John Locke Foundation
John Hood examined Gov. McCrory’s announcement yesterday that, “Since 2013, North Carolina has the #1 fastest growing economy in the nation, according to the latest data released by the U.S. Department of Commerce Bureau of Economic Analysis.”
(Politifact North Carolina examined it as well, rating it “True.”)
Hood writes that McCrory’s claim is “absolutely true” in terms of current dollars, and he also looks at it with respect to adjusting for purchasing power (emphasis added):
Gov. Pat McCrory’s office just put out a press release noting that since the 1st quarter of 2013, North Carolina’s growth in gross domestic product is the largest in the nation. The governor’s claim here is absolutely true, if measuring GDP in current dollars: 13.35% growth from 1stQ2013 to 3rdQ2015 (latest available), vs. a national average of 9.89% and Southeastern average of 9.91%.
However, some might argue that we should measure the GDP trends in dollars adjusted for purchasing power. Still, North Carolina’s performance compares favorably by that calculation: 7.69% growth, which ranks NC 1st in the Southeast (5.15% average) and 9th in the nation (5.8% average). An impressive relative gain for NC no matter how you look at it. Of course, you can debate the cause, but not the basic facts.
Hood’s recent Carolina Journal column also looks at state economic trends.