The Bureau of Economic Analysis (BEA) released its quarterly estimates for state-level gross domestic product growth for the second quarter on Wednesday, revealing that New York’s economy grew by 4 percent at an annual rate and the fastest of any state for the April, May and June period.
Real GDP rose in 44 states as well as Washington, D.C. in the second quarter, the BEA said, as overall economic growth was upwardly revised to 2.2 percent. New York was followed by South Carolina and Delaware—both 3.5 percent. Six states saw their economic contract, however.
West Virginia’s real GDP sank by 2.3 percent, and the Mountain State was followed by Wyoming, Alaska, North Dakota, Kansas and Nebraska when it came to the worst performing economies in the second quarter.
The New York Stock Exchange is seen during afternoon trading on September 03, 2026 in New York City.
Its previous report, released in June, found that Washington state had the fastest growing economy in the first quarter, followed by California and South Carolina.
According to the BEA’s latest nationwide reading, real GDP rose at an annual rate of 1.5 percent in the second quarter, marking a drop from 2.1 percent in the first and falling below forecasts that this would hold steady into the summer months. This slowdown has been attributed to the country’s widening trade deficit and rising fuel prices, and comes despite healthy levels of consumer spending in the U.S.
Looking ahead, the International Monetary Fund (IMF) has projected that U.S. GDP growth will reach around 2.3 percent for 2026 following a lackluster 1.9 percent in 2025, above the average for other advanced economies. However, in its latest World Economic Outlook report, the organization forecast that this would again slow to 2.2 percent in 2027.
Which States Had the Fastest Growing Economies?
According to the BEA data, economic growth was spread out in the second quarter, with growth ranging from 4 percent to negative 2.3 percent.
Regionally this marks a shift from the first quarter, however, when the fastest growing economies were located in the Far West and South East.
New York’s economy has benefited from a number of long-term and contemporary supports, including strong Wall Street profits in 2026 and its large health care sector—consistently of the leading contributors to payroll growth in the U.S.
But state officials have faced criticism for policies seen as weakening the prospects for economic growth, such as high taxes and spending relative to other states.
This is a developing story. More to come.
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