Economic growth has slowed down for the 4th quarter in the state of Massachusetts.
The economic growth for the entire United States was higher than the growth rate for the state of Massachusetts for the final 3 months of 2011.
Economic growth in the state of Massachusetts has been outweighing the growth rate for the entire nation for six quarters and it is the first time that the rate was below the average for the U.S.
The report was released by MassBenchmark’s which is an affiliate of the Federal Reserve Bank of Boston and the Donahue Institution.
The Gross Domestic Product for the state of Massachusetts was only 2.3 percent for the 4th quarter while the GDP for the entire nation was approximately 2.8 percent over the last 3 months of 2011.
The weak GDP data for the state of Massachusetts can be dated back to the second quarter for the year 2010. Many of the economists are optimistic about the state of Massachusetts despite the weak GDP data. The director of MassBenchmark’s Martin Romitti points out the positive data that was released about the state as the stock prices rose for the majority of the firms in Massachusetts, consumer confidence was increased and a sharp upward spike in the amount of consumer spending. Martin states that the road to recovery for the state of Massachusetts is still in full force.
Economists have made projections for the economic growth rates for the next upcoming year. It is expected that the growth rate for the first quarter of 2012 should be approximately 3.5 percent and should reach as high as 4 percent for the second quarter. The economic slowdown in the state of Massachusetts can be attributed to the decrease in the demand for information technology products.
Overall, the economic growth rate may have slowed down in Massachusetts but the states prominence will be essential in the road to economic recovery for the entire nation.