Health care, real estate drove Maine’s economic growth in 2016

Posted May 11, 2017, at 3:05 p.m.
Last modified June 02, 2017, at 3:17 p.m.

PORTLAND, Maine — Maine’s economy grew at roughly the national average last year, with health care, real estate and corporate management sectors responsible for nearly all of the increase.

Maine’s gross domestic output, adjusted for inflation, grew about 1.4 percent last year against a national average of 1.5 percent, putting the state 21st nationally for the full year.

The figures from the U.S. Bureau of Economic Analysis show three industry sectors accounted for almost all of the year’s growth, counteracting declines in manufacturing, which made up about 10 percent of all of the state’s output in the past decade.

Explore changes in industry output in the interactive graphic below.

The year-end figures show that Maine’s economic output continued to outpace 2007, but fell slightly short of the state’s gross domestic product in 2006, before the start of the Great Recession. The state had the slowest rate of GDP growth in the final quarter of 2016, compared with the third quarter, among the New England states.

[Maine’s economy hits a benchmark in 2016, but rural areas still suffer]

In the last year, the state hit various benchmarks on the road to economic recovery, including gaining back all of the payroll jobs lost, after 109 months. It was the longest period of job recovery for any of the last seven recessions, by far.

[After 109 months, Maine’s finally recovered jobs lost to the recession]

In 2016, changes to real GDP varied across the states, ranging from 3.7 percent growth in Washington to a 6.5 percent decline in North Dakota. At the national level, Information services was the fastest growing industry nationwide, followed by professional, scientific and technical services and health care and social assistance.

 

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