Mass. recovery leading region

Growth rate is 4th fastest in nation

June 08, 2011|By Megan Woolhouse, Globe Staff

The Massachusetts economy expanded faster than any other state in New England last year and ranked fourth in the nation in economic growth, the Department of Commerce reported yesterday.

The state’s economy grew 4.2 percent in 2010, trailing only North Dakota, which grew 7.1 percent; New York, 5.1 percent; and Indiana, 4.6 percent. The economy of West Virginia, which ranked fifth, grew 4 percent, according to the Commerce Department.

Massachusetts has recovered faster than the nation as whole, because of the strength of the state’s technology and health care industries, analysts said. The national economy grew 2.6 percent last year.

The report analyzed states’ gross domestic product, an inflation-adjusted measure of what consumers, businesses, and government spent on goods and services, plus investment and foreign trade activity during 2010.

In New England, Vermont ranked second after Massachusetts, with 3.2 percent growth, followed closely by Connecticut (3.1 percent), Rhode Island (2.8 percent) fourth, and Maine (2.1 percent) fifth. New Hampshire ranked last in New England with 1.3 percent growth — near the bottom nationally.

The unemployment rate in Massachusetts has been significantly lower than the nation’s and dropped to 7.8 percent in April from 8 percent in March, though long-term unemployment remains a problem for many residents. The state is scheduled to report May unemployment numbers next week.

Last week, the Labor Department said that the nation’s unemployment rate inched up to 9.1 percent in May, an unexpected increase that may be because of a global economic slowdown and a lesser demand for US goods, particularly by China.

Economists have said that a global slowdown could affect Massachusetts, where many businesses, particularly in the technology sector, sell goods and services to national and international markets.

Megan Woolhouse can be reached at mwoolhouse@globe.com