Business Journal: Area GDP Down
Sacramento’s growth domestic product growth lagged behind the state average and many major markets.
Monday, October 6, 2008
Even before the subprime mortgage crisis hit hard, Sacramento’s economy was showing signs of distress. According to just-released data from the federal Bureau of Economic Analysis, the region’s gross domestic product grew 6.2 percent in 2005. But growth slowed significantly to 3.5 percent by 2006, largely because of the embattled construction industry.
The bureau tabulated the GDP for more than 200 metros nationwide. It factored out inflation so data would show true growth or contraction. The Sacramento region was the nation’s 30th-largest economy but it ranked No. 127 in economic growth in 2006.
The state as a whole did slightly better, with a 3.8 percent GDP increase.