States from Texas to North Dakota, which have large oil and gas industries, will lead the U.S. economic recovery while other regions stagnate, according to Standard & Poor’s.
Real gross domestic product will increase this year in the “west north central” and “west south central” regions by 3.48 percent and 2.8 percent, respectively, S&P said today in a report. U.S. real GDP may rise 2.1 percent this year, according to the report.
“Energy sector activity and growth in oil prices have strengthened the recovery for Texas, Oklahoma, and Louisiana,” Gabriel Petek, the primary S&P analyst, wrote in the report. “Increased agricultural production, as well as an oil boom in the Dakotas, will likely continue to support better employment statistics than national averages.”
The New England area, which consists of Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont, will have the least GDP growth through 2013, S&P said. The New York- based ratings company cited likely declines in government spending.
North Dakota’s economy outpaced every other state in 2011, with the fastest growth in personal income, jobs and home prices, according to Bloomberg Economic Evaluation of States. Texas ranked 12th.
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