Posted at 10 a.m., Monday, June 4, 2001

Hawai'i ranked last in '90s economic growth

Associated Press

WASHINGTON — Arizona and seven other Western states outperformed the rest of the country in economic growth during much of the 1990s, while Hawai'i and Alaska suffered the worst growth rates, the U.S. Commerce Department said.

Arizona led all other states during the 1992-99 period, turning in an average growth rate of 7.3 percent. Neighboring Nevada was not far behind, with average growth of 7.0 percent, according to a new report on economic activity during what has become the country's longest economic expansion.

During the 1992-99 period, the national economy was growing at average annual rates of 4 percent.

In addition, states that did significantly better than the 4 percent national average were Oregon, with an average growth of 6.8 percent; Colorado, 6.6 percent; Idaho, 6.6 percent; New Hampshire, 6.3 percent; Utah, 6.3 percent; New Mexico, 6.2 percent; Georgia, 5.8 percent; Texas, 5.4 percent; and North Carolina, 5.1 percent.

At the other end of the scale, Hawai'i turned in the worst economic performance during the period, with its economy actually shrinking 0.3 percent on average. Government analysts said the state had trouble emerging from the last recession, in 1990-91, and was hit hard by the 1997-98 Asian currency crisis.

Alaska was second-slowest in growth, with an average increase of 0.5 percent during the eight-year period. Other states with weak performances were West Virginia, 2.4 percent; Wyoming, 2.5 percent; North Dakota, 2.5 percent; Maine, 2.6 percent; Montana, 2.7 percent; Pennsylvania, 2.8 percent; New Jersey, 2.9 percent; Vermont, 3.0 percent; Maryland, 3.0 percent; and Rhode Island, 3.0 percent.

In the 12 states with the weakest growth rates, gains in high-tech industries were offset by significant weakness in old-line manufacturing industries such as apparel and textiles and lumber and wood products.

California, with the nation's biggest economy, averaged growth of 3.9 percent during the eight-year period, just under the national average but far below many of its fast-growing Western neighbors. Its economy was slow to emerge from the 1990-91 recession, reflecting in part big cutbacks in federal spending on defense, which hit California particularly hard.