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

Portland, 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

Cincinnati
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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

Manchester, New Hampshire
Sean Pavone / Shutterstock.com

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

Fayetteville, 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

Spartanburg, South Carolina
Kevin Ruck / Shutterstock.com

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

Indianapolis, 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

cars in 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

Memphis 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

El Paso, Texas
BrianWancho / Shutterstock.com

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

Rapid City, 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

Durham, North Carolina
Sean Pavone / Shutterstock.com

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

Pensacola 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

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

Livingston, Montana
Nick Fox / Shutterstock.com

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

Reno, Nevada
Andrew Zarivny / Shutterstock.com

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

Working on computer data analysis on a laptop
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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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