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Construction Downturn Causes Florida Growth To Flatten

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By MICHAEL SASSO

The Tampa Tribune

Published: June 5, 2008

TAMPA - Florida's economy flattened out in 2007 largely because of the severe downturn in construction, according to statewide gross domestic product numbers released today.

On a somewhat positive note, though, economic growth at least didn't turn negative.

Florida's real GDP last year was about $609.9 billion, which reflected zero percent growth from 2006, according to data from the U.S. Department of Commerce Bureau of Economic Analysis. That flat rate ranked Florida's economic growth 47th out of the 50 states, ahead of only New Hampshire, Michigan and Delaware, which all had negative growth rates.

The agency defines state gross domestic product as the sum of what statewide consumers, business and government spent on final goods and services, plus investment and net foreign trade. "Real GDP" is gross domestic product reflected in 2000 dollars. Benchmarking GDP to 2000 helps the government compare economic growth from year to year, adjusting for inflation, said BEA spokesman Ralph Stewart.

Overall, real GDP growth in the United States was 2 percent last year. The strongest growth was recorded in Utah, which saw its state real gross domestic product rise by 5.3 percent last year when compared to 2006. The worst performing state was Delaware, which saw its real GDP fall by 1.6 percent over the year.

Until 2007, Florida had recorded fairly strong economic growth. For example, the state's economy grew by 3.6 percent in 2006 over 2005. In 2007, the state's economy was hurt the most by the construction downturn, which caused Florida's GDP to fall by 2 percentage points, Bureau of Economic Analysis data show.

Other industries helped to slightly offset the drag from the construction industry, however. Health care and social assistance added 0.45 percentage points to the state's economic growth, while the retail trade and information sectors each added 0.31 percentage points, the data show.

Reporter Michael Sasso can be reached at (813) 259-7865 or msasso@tampatrib.com.

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