Ohio’s GDP growth weaker since late 2021, partly from declines in manufacturing and financial activities
Ohio’s economic growth was about average through the first two years of the pandemic, but after that its growth has been “noticeably weaker,” according to a new report from the Federal Reserve Bank of Cleveland.
The state’s GDP grew by about half a percent between the fourth quarter of 2021 and the third quarter of 2023, ranking 45th out of all states.
What changed Ohio’s trajectory? While industries such as professional services and health care saw significant growth, the state’s two biggest industries — manufacturing and the finance, insurance, and real estate sector (FIRE) — contracted.
Those two industries had a significant impact in other states as well, according to Guhan Venkatu, senior policy advisor at the Cleveland Fed.
“Manufacturing and FIRE tend to be important to explaining GDP growth differences across states, partly because these industries typically account for a fair amount of overall activity, almost a third at the median,” Venkatu writes.
Read the District Data Brief: How Has Ohio Fared in the Current Business Cycle?
Federal Reserve Bank of Cleveland
The Federal Reserve Bank of Cleveland is one of 12 regional Reserve Banks that along with the Board of Governors in Washington DC comprise the Federal Reserve System. Part of the US central bank, the Cleveland Fed participates in the formulation of our nation’s monetary policy, supervises banking organizations, provides payment and other services to financial institutions and to the US Treasury, and performs many activities that support Federal Reserve operations System-wide. In addition, the Bank supports the well-being of communities across the Fourth Federal Reserve District through a wide array of research, outreach, and educational activities.
The Cleveland Fed, with branches in Cincinnati and Pittsburgh, serves an area that comprises Ohio, western Pennsylvania, eastern Kentucky, and the northern panhandle of West Virginia.
Media contact
Chuck Soder, chuck.soder@clev.frb.org, 216.672.2798
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