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Which States Have the Fastest GDP Growth in 2026?
Key Takeaways
- New York state had the highest annualized real GDP growth of 4.0% in the second quarter of 2026.
- Delaware and South Carolina followed closely behind at 3.5%.
- Maine saw the biggest jump in its economic growth relative to the first quarter of 2026.
The U.S. economy grew in the second quarter of 2026, but that growth was far from evenly distributed. Across the country, state GDP growth ranged from a 4.0% expansion to a 2.3% contraction, revealing stark differences in economic momentum.
This graphic, created in partnership with Terzo, maps annualized real GDP growth by state in the second quarter of 2026. It’s part of our Markets in a Minute series, which delivers quick economic insights.
Ranking GDP Growth by State
The latest available data shows that New York recorded the fastest growth in the second quarter. At 4.0%, the state’s economic growth was nearly double that of the national growth of 2.2%. Delaware also had strong growth, with finance and insurance being the biggest boost to GDP in both states.
| State or Jurisdiction | Annualized Change in Real GDP, Q1 2026–Q2 2026 (%) |
|---|---|
| New York | 4.0 |
| Delaware | 3.5 |
| South Carolina | 3.5 |
| Minnesota | 3.4 |
| Utah | 3.4 |
| Georgia | 3.1 |
| Connecticut | 3.0 |
| Florida | 3.0 |
| North Carolina | 2.9 |
| Massachusetts | 2.7 |
| South Dakota | 2.7 |
| Vermont | 2.7 |
| Alabama | 2.6 |
| Arizona | 2.5 |
| California | 2.5 |
| Pennsylvania | 2.5 |
| Michigan | 2.4 |
| Wisconsin | 2.4 |
| Texas | 2.2 |
| Illinois | 2.1 |
| Mississippi | 2.1 |
| New Hampshire | 2.0 |
| Ohio | 2.0 |
| Missouri | 1.9 |
| Iowa | 1.7 |
| New Jersey | 1.7 |
| Tennessee | 1.7 |
| Idaho | 1.5 |
| Maine | 1.4 |
| Indiana | 1.3 |
| Maryland | 1.3 |
| Nevada | 1.3 |
| Virginia | 1.2 |
| Arkansas | 1.1 |
| Colorado | 1.0 |
| Rhode Island | 0.9 |
| D.C. | 0.8 |
| Oregon | 0.8 |
| Hawaii | 0.7 |
| Kentucky | 0.7 |
| Washington | 0.6 |
| New Mexico | 0.4 |
| Oklahoma | 0.3 |
| Louisiana | 0.2 |
| Montana | 0.1 |
| Nebraska | -0.1 |
| Kansas | -0.6 |
| North Dakota | -0.9 |
| Alaska | -1.3 |
| Wyoming | -1.6 |
| West Virginia | -2.3 |
| U.S. Overall | 2.2 |
Source: U.S. Bureau of Economic Analysis data released September 30, 2026. Real GDP is in millions of chained 2017 dollars.
South Carolina and Utah both had strong economic growth, driven primarily by the real estate and rental and leasing industry. In South Carolina, rapid population growth has coincided with a housing boom, with the state ranking second for new building permits per capita.
Manufacturing drove results in Minnesota, accounting for nearly a third of the state’s GDP growth. Exports in the state were also up in the second quarter, with the largest product categories of optic and medical products, electrical equipment, and machinery all seeing year-over-year growth.
The Biggest Changes Since Q1 2026
Compared to the first quarter, four states and D.C. saw a change in annualized GDP growth of five percentage points or more.
Maine’s economy had the strongest rebound, driven primarily by gains in manufacturing and finance.
| State or Jurisdiction | Change in Annualized Real GDP Growth, Q1 2026–Q2 2026 |
|---|---|
| Maine | +5.8 percentage points |
| Wyoming | -5.1 percentage points |
| West Virginia | -5.9 percentage points |
| D.C. | -6.5 percentage points |
| Idaho | -7.7 percentage points |
At the other end of the scale, D.C. saw a large drop. Much of the swing came from the federal government, which had helped drive a post-shutdown rebound in the first quarter before contracting in the second quarter.
After an extraordinary first quarter, Idaho’s economic growth slowed considerably. Much of the shift came from manufacturing, mining, and construction, which together contributed 6.5 percentage points to growth in the first quarter but virtually nothing in the second quarter.
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