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The debate over the health of the Delaware economy continues with Republican legislators taking note of a US Department of Commerce report indicating that the state lagging behind the nation.
According to a report released in June by the US Department of Commerce Bureau of Economic Analysis, Delaware’s economy grew 1.2 percent in 2014 while the national economy grew at 2.2 percent. That tepid rate placed the state 30th among the 50.
The Commerce Department did caution that figures are subject to change.
Growth measured by GDP by state – the value of goods and services produced in the state – is one of the most important, sate Senate Republican Whip Greg Lavelle, R-north Wilmington said in a weekly newsletter.
“This trend of slower than national and regional growth has been consistent for a number of years now,” he said. “As evidenced by this year’s budget process, the ‘demand’ for tax revenues is strong and continues to grow. The best way to meet this demand is with a strong and growing economy. Delaware needs to do more so that we can lead the nation and region in economic growth and not consistently lag behind,” Lavelle stated.
The weekly newsletter has typically focused on reports of negative trends in the economy,
The 2014 figures showed GDP growth was also sluggish in the adjacent states of Pennsylvania, Maryland and New Jersey.
Republicans said the report, which also updates past estimates of GDP by state, shows Delaware’s growth has been lagging for at least the last four years. In 2011, the state’s economy grew by 1.2 percent, and the country grew by 1.4 percent.
In 2012, the state’s economy shrank by 3 percent, and the country grew 2.1 percent. In 2013, the state grew by 0.7 percent, with the national rate at around 2 percent.
Other reports have indicated the state is seeing economic growth at or above the national average.
In February, the Federal Reserve Bank of Philadelphia released a report indicating that the Delaware economy ranked in the top three in terms of future economic growth.
The state’s unemployment rate has dropped well below the national average. However, blue collar employment has never recovered from the closing of the state’s two auto plants in 2008 and 2009.
