15 States With the Fastest-Growing Economies

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Editor's Note: This story originally appeared on Filterbuy.

Since the start of the year, the U.S. stock market has suffered staggering losses. Inflation has dominated headlines for almost a year, with the Consumer Price Index rising at its fastest rate in decades.

The U.S. Federal Reserve has embarked on a series of interest rate hikes to cool demand in the economy, which should reduce inflation but could also send the economy into a recession. Global events like Russia’s military invasion of Ukraine and a recent wave of COVID-19 cases in China could continue to disrupt global supply chains and make it harder to find certain goods.

Amid all this news, consumer confidence in the economy has fallen in recent months and remains below pre-pandemic levels.

But by many other key indicators, the overall economic picture is strong. Real GDP grew by 5.7% over 2021, powered by strong consumer demand and a rebound effect for many industries after a difficult 2020. The unemployment rate has fallen to 3.6%, just above the pre-pandemic level of 3.5%, and the tight labor market has helped push workers’ wages higher. Thanks to increased savings and strong investment returns during much of the pandemic, more entrepreneurs have had the resources to start new businesses.

Researchers at Filterbuy combined these factors to determine the states with the fastest-growing economies between 2020 and 2021. The data used in this analysis is from the U.S. Bureau of Economic Analysis, U.S. Bureau of Labor Statistics, and U.S. Census Bureau. Researchers calculated a composite score based on the following factors, all weighted equally:

• GDP growth
• New business growth
• Employment growth
• Per capita income growth
• Population growth

Here are the states with the fastest-growing economies.

15. Maine

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Composite score: 56.74

GDP growth: +9.8%

New business growth: +26.6%

Employment growth: +3.7%

Per capita income growth: +6.5%

Population growth: +0.7%

14. Kentucky

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Composite score: 57.96

GDP growth: +10.3%

New business growth: +25.9%

Employment growth: +3.2%

Per capita income growth: +7.8%

Population growth: +0.1%

13. New Hampshire

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Composite score: 65.70

GDP growth: +12.1%

New business growth: +19.9%

Employment growth: +3.7%

Per capita income growth: +8.3%

Population growth: +0.7%

12. Arkansas

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Composite score: 65.74

GDP growth: +10.6%

New business growth: +28.0%

Employment growth: +2.8%

Per capita income growth: +7.7%

Population growth: +0.4%

11. South Carolina

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Composite score: 66.10

GDP growth: +10.3%

New business growth: +35.3%

Employment growth: +3.1%

Per capita income growth: +6.6%

Population growth: +1.2%

10. Indiana

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Composite score: 69.40

GDP growth: +12.0%

New business growth: +25.7%

Employment growth: +3.2%

Per capita income growth: +8.6%

Population growth: +0.3%

9. Utah

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Composite score: 73.88

GDP growth: +11.5%

New business growth: +22.7%

Employment growth: +4.9%

Per capita income growth: +7.2%

Population growth: +1.7%

8. Tennessee

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Composite score: 73.88

GDP growth: +13.2%

New business growth: +24.8%

Employment growth: +3.4%

Per capita income growth: +8.0%

Population growth: +0.8%

7. Texas

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Composite score: 75.92

GDP growth: +11.8%

New business growth: +27.7%

Employment growth: +3.5%

Per capita income growth: +7.7%

Population growth: +1.1%

6. South Dakota

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Composite score: 77.56

GDP growth: +11.7%

New business growth: +28.5%

Employment growth: +3.1%

Per capita income growth: +8.6%

Population growth: +0.9%

5. North Carolina

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Composite score: 79.58

GDP growth: +11.0%

New business growth: +28.2%

Employment growth: +4.2%

Per capita income growth: +8.0%

Population growth: +0.9%

4. Florida

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Composite score: 80.40

GDP growth: +10.9%

New business growth: +27.3%

Employment growth: +4.6%

Per capita income growth: +8.3%

Population growth: +1.0%

3. Idaho

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Composite score: 80.44

GDP growth: +12.5%

New business growth: +28.0%

Employment growth: +5.3%

Per capita income growth: +6.7%

Population growth: +2.8%

2. Montana

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Composite score: 80.80

GDP growth: +15.1%

New business growth: +26.8%

Employment growth: +4.6%

Per capita income growth: +6.9%

Population growth: +1.6%

1. Nevada

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Composite score: 86.12

GDP growth: +12.9%

New business growth: +30.7%

Employment growth: +6.8%

Per capita income growth: +7.5%

Population growth: +1.0%

Methodology

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The data used in this analysis is from the U.S. Bureau of Economic Analysis GDP and Personal Income data, the U.S. Bureau of Labor Statistics Current Employment Statistics, and the U.S. Census Bureau’s Business Formation Statistics. To determine the states with the fastest-growing economies between 2020 and 2021, researchers calculated a composite score based on the following factors, all weighted equally:

• GDP growth
• New business growth
• Employment growth
• Per capita income growth
• Population growth

In the event of a tie, the state with the greater GDP growth was ranked higher.

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