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October 16, 2019Cart

Business

by Fairfield County Business Journal
by FCBJ

CT’s economy is stagnant, report shows

Connecticut’s economy has been stagnant, while its economic outlook going forward stands at 40th in the nation, according the annual “Rich States, Poor States” report by The American Legislative Exchange Council [ALEC].

The state ranked particularly low in ALEC’s Economic Performance index; coming in dead last. The performance report is a backward-looking measure based on state gross domestic product, domestic migration and nonfarm payroll employment over the past decade. The Economic Outlook Ranking is a forecast based on a state’s current standing in 15 state policy variables that ALEC predicts will impact the future.

Generally speaking, states that spend less — especially on income transfer programs — and states that tax less, particularly on productive activities such as working or investing, experience higher growth rates than states that tax and spend more. Texas topped the economic performance list, with Massachusetts at 15th and New York 19th. On the economic outlook side, Utah was the leader for the 11th straight year, with Massachusetts 25th and New York last for the fifth consecutive year.

While such low-ranking measurements may spell trouble for Connecticut’s future, the state remains number five in average per capita income.