NC’s Economy 8th Worst in 2009

The Triangle Business Journal highlights the recently-released data showing that North Carolina’s economic performance ranked 8th worst in the nation in 2009.

The value of all the goods and services produced in North Carolina in 2009 declined by 3.2 percent in the face of the steepest recession in decades. That gives the Tar Heel State the distinction of having the eighth worst performance of the year among the 50 states and the District of Columbia.

But how could this be? We are reminded by the Governor’s office that North Carolina has the “top business climate” in the nation, according to Site Selection magazine.

Perhaps Perdue’s administration should reconsider putting so much stock in Site Selection’s rankings. A closer look at the state economic numbers for 2009 shows that there were 12 states with declines of 3% or greater. Of those 12, 8 were ranked among Site Selection’s top 20 business climates (with a ninth ranking 21st by Site Selection). It seems that a high ranking by Site Selection is more likely to be related to poor economic performance.