Alaskanomics Economic Update Part 3

By: Mark Edwards – Senior Credit Officer & Bank Economist
[Read the full report here]

Gross Domestic Product, GDP – U.S. GDP growth has been stagnate and below historical levels for the last decade. Real GDP grew 1.6% nationwide in 2016 according to the U.S. Department of Commerce - Bureau of Economic Analysis. Economic activity was driven by growth in personal expenditures, residential fixed investment, government spending, and exports. This was partially offset by lower levels of commercial inventory and fixed investment and an increase in imports. Optimism for future economic growth stems from potential tax cuts, deregulation, encouraging the repatriation of dollars to the U.S. for capital expenditures, and proposed increases in spending on domestic infrastructure.

Alaska’s gross state product (GSP) is only available through the third quarter of 2016. The market value of all goods and services produced in Alaksa was measured at $51.5 billion. Alaska GSP declined 0.1% in 3Q ranking it 49 out of 50 states. New Mexico was the only other state not to grow in any quarter of 2016. Alaska’s GSP declined 0.6% in 2015.

Per capita income – Alaska’s per capita income in the third quarter of 2016 was $55,588. This ranked 8th best out of the 50 U.S. states. U.S. per capita income was $49,681. Compared to the third quarter of 2015, Alaska declined 0.7%. Total income in Alaska was $41.1 billion, down $331 million from the prior year. Oil & gas, military and professional services were the sectors with the largest declines. Health care and federal government showed the best improvement. In contrast, U.S. personal income rose 3.4% year over year in 3Q 2016.

Population – Alaska’s population has remained virtually unchanged for the last three years. The most recent Department of Labor estimate for Alaska's population is 739,828. That is an increase of only 3,969 people in the last three years. The natural increase of births minus deaths was 21,450 since 2014. However, a net of in and out migration of residents resulted in a loss of 17,481 people over the same period.

Read More: Alaskanomic's Economic Update [Part 1]