State Gross Domestic Product

New Mexico Business Outlook (www.bbrs.nmsu.edu/nmbizoutlook) is the electronic newsletter from the New Mexico State University College of Business. It provide illuminating if sometimes technical explorations of the state's economy. The latest, by Dr. Richard Adkisson in January issue, considers state domestic product, an economic measure roughly equivalent to the national GDP. To get the number, the federal Bureau of Economic Analysis adds labor income, business taxes and capital income for each state. Nationally, New Mexico claims one half of one percent of the nation's GDP. Our state GDP per capita ranks 40th. The state's population is 36th nationally, suggesting that we are less productive than our proportion of the population. The New Mexico GDP is 81% of the nation's. Delaware, which has a population about the size of metro Albuquerque, is first in per capita GDP and produces 156% of the national average. Alaska, at 6th, and Colorado, 7th, are the highest ranking western states in per capita GDP. The states below New Mexico tend to be in the south.

Between 1997 and 2006, the state GDP grew 36.6%. Five sectors increased their proportion of the state GDP: Durable goods manufacturing (think Intel), information, agriculture, professional and technical services, and health care and social assistance. Over the period, the fastest growing sectors were durable goods manufacturing, information, professional and technical services and agriculture. Sectors shrinking in size included nondurable goods manufacturing and a key tourism sector, arts, entertainment and recreation. Another key tourism sector, accommodation and food services, did grow 17% during the decade but dropped in its contribution to state GDP from 3.2% to 2.6%.