Louisiana has slowest GDP growth in the nation at -0.2%

May 04, 2018 - 3:57 pm

(WWL.com) -- The state posted the slowest gross domestic product growth in the nation in 2017 at -0.2 percent. It’s the second straight year Louisiana had a decline in the real GDP. LSU Economist Doctor Loren Scott says Louisiana is coming off a 28 month recession that ended in the final quarter of 2017.

“It has been very bad for the oil patch especially for the Lafayette, Houma, and Shreveport areas. It has also drug down the growth rate in New Orleans.”   

Scott says the downturn in the oil and gas industry has bottomed out, which is good for Louisiana’s economy. He says the next big threat is the potential of higher taxes on businesses as legislators scramble to fix a $648 million budget hole.

“More and more taxes helps move the needle towards our biggest competitor for these projects and that’s Texas.

Louisiana’s Gross Domestic Product Growth for the fourth quarter of 2017 was 2.2 percent. which could be a positive sign. Scott credits the industrial expansion boom that’s ongoing in Lake Charles and Baton Rouge

 “We’re still getting some boom going on from that but the lack of further decline of oil patch I think has helped us to have a relatively good fourth-quarter.”

 

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