New Mexico’s economy continues to expand, thanks to the recovery of the oil and gas industry here, according to the federal Bureau of Economic Analysis.
The state’s gross domestic product, a key economic indicator, rose by 4.5 percent to $97.8 billion in the second quarter of this year.
It is the most significant increase in months for the state’s long-stagnant economy. In 2016, New Mexico was one of only 10 states to have a decrease in its GDP compared with the previous year. In the first quarter of this year, the state’s economy grew by 2.8 percent.
“We are continuing to build momentum growing and diversifying our economy,” Gov. Susana Martinez said. “By streamlining regulations and cutting taxes, we’re making New Mexico more competitive for jobs and investment than ever before. I’m committed to keeping up the fight for the tools and reforms that help businesses grow and hire more New Mexicans.”
About one-third of New Mexico’s economy is tied to government and the volatile oil and gas industry. Todd Siebeneck, an economist with the bureau, said much of New Mexico’s recent growth has come from the mining sector, which includes oil and gas. The data show that of New Mexico’s 4.5 percentage gain, 1.77 percentage points can be attributed to that sector’s growth.
“It’s what we’re seeing all over the country,” said Siebeneck.
Nationally, the mining sector increased by 28.6 percent and contributed to growth in 49 states.
New Mexico’s retail and trade sector also contributed slightly to the state’s economy. It grew by about half a percentage point.
New Mexico’s GDP increase was the seventh-highest growth rate of any state. North Dakota had the highest GDP increase in the country at 8.3 percent. Iowa’s was the lowest; its economy contracted by 0.7 percent.
