2010 gross state product boost eroded by inflation
September 14, 2011
Economic activity in rural Idaho bounced back from the depths of the recession, sending the 33 counties’ contribution to gross state product up 4.3 percent in 2010. But when adjusted for inflation, especially the high cost of energy in rural communities, the real economic activity outside the five urban areas rose just 1.7 percent.

The value of all goods and services generated in the rural counties last year was estimated at just over $16.9 billion, up from $16.2 billion a year earlier. That accounted for 30.6 percent of Idaho’s gross state product compared to 30.3 percent in 2009. The rural economy contracted by more than 4 percent in 2009.

But once inflation is considered, the actual value in rural Idaho was estimated at just under $15 billion, up from $14.7 billion in 2009. That accounted for 29.5 percent of inflation adjusted gross state product, essentially unchanged from 2009.

The U.S. Bureau of Economic Analysis estimated the urban contribution to gross state product at $38.5 billion in 2010, up just over 1 billion, or 2.9 percent from 2009. Inflation had a lesser impact on the five urban areas – Boise, Coeur d’Alene, Idaho Falls, Lewiston and Pocatello. Real gross state product was $35.75 billion, up 2.1 percent from the $35 billion in 2009.

Idaho’s total gross state product rose 3.3 percent to $55.4 billion in 2010 or 2 percent to $50.7 billion when adjusted for inflation. That ranked 30th among the states and compared to the 2.6 percent increase in real gross product recorded nationwide.

In real terms, Idaho’s urban areas posted strong comebacks from the decline in economic activity they suffered in 2009 – except for Coeur d’Alene.

Coeur d’Alene was the only metro area in Idaho to see gross product decline for a second straight year. After dropping 3.8 percent in 2009, gross product fell another 0.7 percent in 2010. Construction, manufacturing and real estate – which account for about 30 percent of the local economy – were all down again in 2010.

Only 31 of the nation’s 366 metropolitan areas saw greater losses in gross product in 2010.

The Pocatello metro area, which also includes Power County, posted an increase in gross product of just 1.3 percent in 2010, but that was a substantial move from the 5.1 percent decline the region suffered in 2009 – the worst in the state.

Manufacturing was up in the other four metro areas, and construction even reported gains in the Idaho Falls and Pocatello areas although construction overall was down again in the metro areas.