June 14, 2016

NM’s GDP shrinks, led by mining, oil and gas drops

New Mexico just got some more bad economic news. The state of was of eight states whose gross domestic product (GDP) fell during the fourth quarter of 2015, the U.S. Bureau of Economic Analysis said Tuesday.

Money flying_sideways

New Mexico’s GDP fell by 1.1 percent, with the mining and oil and gas sectors showing the biggest drops. The utilities, construction, manufacturing and health care and social assistance sectors also registered declines.

This piece originally appeared on the ABQ Free Press website and is reproduced with permission.

Eight industry sectors in the state had GDP declines and 13 had increases.

In actual dollars, New Mexico’s GDP fell to $91.8 billion in the quarter, down from $92.4 billion in the third quarter.

GDP is the market value of all goods and services produced a nation or state and is a gauge of an economy’s health.

In the fourth quarter, New Mexico’s had the 46th worst GDP growth rate among the states.

Other states that had negative GDP growth were Alaska, Iowa, Kansas, Montana, Nebraska, Oklahoma and Wyoming.

With the exception of Oklahoma, other states in the region fared much better than New Mexico in terms of GDP. Colorado and Utah each had increases of 2.8 percent, while Arizona had a 2.3 percent increase. Texas grew by 1.4 percent and Nevada saw a 0.1 percent increase.