2009 GDP down in Fort Smith area

The Little Rock area was the only Arkansas metro to see a GDP increase between 2008-2009, according to figures released Wednesday (Feb. 23) by the federal Bureau of Economic Analysis.

Real GDP during 2009 in the Fort Smith metro area was $8.763 billion, down 2.03% compared to 2008 and down 4.49% compared to 2006 GDP of $9.175 billion.

Northwest Arkansas saw its GDP fall from $16.214 billion in 2008 to $16.021 billion in 2009.

“Only the Little Rock-North Little Rock-Conway MSA showed positive growth in 2009 (+2.4%). This suggests that much of the growth revealed in the state-level GDP report for Arkansas was concentrated in the central part of the state,” Dr. Michael Pakko, chief economist and state economic forecaster at the Institute for Economic Advancement at the University of Arkansas at Little Rock, noted on his “Arkansas Economist” blog.

The BEA defines real GDP for the metro areas as “an inflation-adjusted measure of each area’s gross product that is based on national prices for the goods and services produced within the metropolitan area.”

GDP by metro area fell an average 2.4% in 2009 after declining 0.4% in 2008.

“The economic decline was widespread as real GDP declined in 292 of 366 (80 percent) metropolitan statistical areas, led by national declines in durable-goods manufacturing, construction, and professional and business services,” noted the BEA in its report.

Despite only one of Arkansas’ eight metro areas seeing a GDP increase in 2009, Pakko saw the report as a positive indicator. He noted that Arkansas was one of only 10 states that that experienced positive GDP growth (up 0.6%) in 2009.

“It will be another year before we see statistics for MSA GDP in 2010. However, the patterns revealed in the 2009 data (along with other, more recent indicators) suggest that a positive economic growth is likely to have emerged for most regions of the state” Pakko explained.

ARKANSAS METRO AREA DATA
Fort Smith metro
2009: $8.763 billion
2008: $8.945 billion

Northwest Arkansas
2009: $16.021 billion
2008: $16.214 billion

Hot Springs
2009: $2.298 billion
2008: $2.344 billion

Jonesboro
2009: $3.535 billion
2008: $3.633 billion

Little Rock-North Little Rock-Conway
2009: $29.967 billion
2008: $29.276 billion

Memphis-West Memphis
2009: $56.392 billion
2008: $58.629 billion

Pine Bluff
2009: $2.734 billion
2008: $2.790 billion

Texarkana
2009: $3.839 billion
2008: $3.907 billion