The 2009 state-by-state real GDP growth rate estimates were released by the BEA this morning. Given that 2009 was a pivotal year in the Great Recession, we saw lots of variability. There were 38 state economies that experienced contractions, most led by the construction and durables goods manufacturing sectors.

The average across all 50 states was a 2.1 percent contraction. Nevada, led the nation in decline with a 6.4 percent economic contraction, while Oklahoma led the nation in expansion with a 6.6 percent expansion. This is a difference of 1,300 basis points!

California, a state that had many regional areas and sectors decimated by the recession, was diverse enough to only contract by 2.2 percent. This is much better than our most recent forecast of -3.9 percent.

The states that contracted the most are in the Great Lakes, the southwest, and in coastal areas: Nevada (-6.4%), Michigan (-5.2%), New York (-4.3%), Arizona (-3.9%), Indiana (-3.6%), Illinois (-3.4%), and Florida (-3.4%). The states that grew the most were mostly from the middle of the country: Oklahoma (6.6%), Wyoming (5.4%), North Dakota (3.9%), Alaska (3.5%), Louisiana (2.5%), and South Dakota (2.2%).

These state-by-state differences are an area of interest and research here at CERF. The question is: how much of these differences in economic performance can be attributable to economic policy choices? We will post updates at this blogspace.