Magic bullet anyone?

Change in GDP, 2011-14: Rhode Island's real gross state product growth, while weak, was still not the worst in New England for 2013-14. The number in 2014 is national ranking. / Source: U.S. Bureau of Economic Analysis
Change in GDP, 2011-14: Rhode Island's real gross state product growth, while weak, was still not the worst in New England for 2013-14. The number in 2014 is national ranking. / Source: U.S. Bureau of Economic Analysis

While there is no question that Rhode Island is recovering from the Great Recession, the pace is languid.

For example, the Ocean State’s gross state product, as measured by the U.S. Bureau of Economic Analysis, increased in real terms (that is, factoring out the effects of inflation) 1.2 percent in 2014, reaching $55 billion. The level of growth placed Rhode Island at No. 29 among the 50 states and the District of Columbia. That follows 2013 growth of 1.9 percent, 2012 growth of 0.8 percent and a 2011 contraction of 0.3 percent.

The Raimondo administration has looked to identify industry sectors that offer the greatest opportunities for growth.

One way to look for where the administration might decide to concentrate its efforts is to examine the BEA’s breakdown of which sectors contributed positively and negatively to the state’s 2013-14 growth.

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One quick glance reveals the poor showing of the construction industry, which subtracted 0.2 percentage points from the state’s GSP over the year. A reversal of that sector’s contraction 2015 would help the state move further into positive territory.

Another sector that seems to hold potential is manufacturing. The U.S. saw durable goods add 0.17 percentage points to the nation’s growth, while nondurable goods added 0.23 percentage points. Rhode Island also saw growth, but 0.09 percentage points for durable goods and 0.05 percentage points for nondurable goods.

And while real estate, rental and leasing enterprises added 0.2 percentage points to the U.S. GDP from 2013 to 2014, it actually put a 0.07 percentage point drag on Rhode Island’s gross state product.

Picking the right horse in this race could make a difference between Rhode Island’s economy accelerating and remaining stuck in neutral. n

Helping and hurting sectors

Industry sectors and their percentage point contribution to Rhode Island’s gross state product growth in 2014.

Helpers n Management of companies and enterprises 0.48 n Professional and technical services 0.23 n Retail trade 0.18 n Finance and insurance 0.15 n Health care and social assistance 0.12 n Arts, entertainment and recreation 0.09 n Durable goods 0.09 n Information 0.09 n Accommodation and food services 0.06 n Nondurable goods 0.05 n Administrative and waste services 0.03 n Other services 0.03 n Transportation and warehousing 0.03 n Educational services 0.01

Hurters n Construction -0.2 n Government -0.2 n Real estate, rental and leasing -0.07 n Utilities -0.01

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