Updated Jul 9, 2023 - Politics & Policy

America's economy rapidly shifts south

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Change in state share of national GDP
Data: Bureau of Economic Analysis. Map: Simran Parwani/Axios Visuals

It's not just about the coasts and the bubbles anymore: Six fast-growing states in the South now add more to the national GDP than the Northeast, the perennial powerhouse, Bloomberg reports.

Why it matters: Americans are spreading out, physically and economically.

  • Those six states — Florida, Texas, Georgia, the Carolinas and Tennessee — are in the middle of a "$100 billion wealth migration" as the U.S. economic center of gravity tilts south, Bloomberg notes.
  • The switch happened during peak COVID. There's no sign it'll reverse.

By the numbers: A flood of transplants helped steer about $100 billion in new income to the Southeast in 2020 and 2021 alone, while the Northeast bled out about $60 billion, Bloomberg writes from IRS data.

Cities with the largest numeric increase in population from 2021 to 2022
Data: Census Bureau. Map: Thomas Oide/Axios

The Census Bureau said in May that nine of the nation's 15 fastest-growing cities were in the South.

  • Of the nine fastest-growing cities in the South, six were in Texas.

The bottom line: For years, the U.S. population has been trending south and southwest. Now money and economic activity are following.

Editor's note: This story was originally published on July 5.

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