NM's Economy Grows, But Remains Small
New Mexico had the seventh-fastest growing economy in the nation in the second quarter, outpacing the growth rates in Colorado, Utah and Arizona.
But the state's economy remains puny and represents just 0.5 percent of the national economy.
In the second quarter, the New Mexico's gross domestic product increased to $97.8 billion, up from $96.6 billion for the three months that ended March 31, according to the U.S. Bureau of Economic Analysis.
The rebound in the oil and gas industry fueled New Mexico's GDP growth, accounting for nearly half of the growth.
Nationally, the GDP grew by 2.8 percent in the second quarter.
North Dakota had the highest growth rate at 8.3 percent, while Iowa had the lowest at minus 0.7 percent.
The GDP statistics show that New Mexico's job growth rate, which has been positive all year, is no fluke.
In the 12 months that ended Oct. 31, New Mexico added 13,200 jobs for a 1.6 percent growth rate. And all those jobs were in the private sector because the government sector actually lost jobs during the year.
The downside to those jobs numbers is that the sector that added the most jobs – leisure and hospitality – also has the lowest paying jobs of any industry sector.
And, New Mexico's economy continues to wallow in its "lost decade." The state still hasn't regained all the jobs it lost during the recession. Total jobs in the state peaked at 849,200 in December of 2007. As of Oct. 31 of this year, the state had 844,000 jobs.
While New Mexico's economy is tiny, it isn't the smallest. Thirteen other states have GDPs that are smaller than New Mexico's.