Along with the fourth quarter personal income estimates, the Bureau of Economic Analysis has also released data for state-level GDP [LINK]. For the second consecutive quarter, Arkansas had the fastest growing real GDP in the nation, expanding at an annualized rate of 5.1%. Nationally, GDP grew at a 2.5% rate in the fourth quarter. Compared to the fourth quarter of 2023, Arkansas GDP was up 4.6%, compared to 2.5% for the U.S.
As was the case in the third quarter, Arkansas GDP was boosted by strong growth in the sector including agriculture (Agriculture, forestry, fishing and hunting). Indeed, in three of the four quarters of 2024 agricultural output boosted total growth significantly. Nevertheless, non-Agricultural output has grown at rates of 2.4% to 4% over the course of the year.
As detailed in the table below, the agriculture sector accounted for 40% of the state’s growth rate in the fourth quarter, with other significant growth contributions from other goods-producing sectors, as well as several service-providing sectors
Over the past five years, real GDP in Arkansas has shown cumulative growth well above the national average. Compared to 2019:Q4, Arkansas GDP has expanded 17.2%, with a comparable figure of 12.2% for the U.S. The most recent two quarters contribute to a widening of that gap.
