NYS economic growth weak in 2012

New York State's economy remained sluggish last year, expanding just one-tenth of 1 percent over the 2011 growth rate, according to federal statistics.

The Bureau of Economic Analysis reported Thursday the state's gross domestic product increased 1.3 percent in 2012. It had climbed only 1.2 percent in 2011, after growing 4 percent in 2010 as recovery from the recession briefly kicked into high gear.

GDP is the sum of all goods and services produced in the state, which totaled $1.04 trillion last year.

New York performed far below the nation's 2.5 percent growth in 2012, and it ranked 37th among the 50 states and District of Columbia.

But within the Northeast, New York was a standout, growing faster than Maine and New Hampshire (both 0.5 percent) and Vermont (1.2). Connecticut was the only state in the nation where the economy contracted last year, by 0.1 percent.

New Jersey's GDP matched New York's, while Massachusetts (2.2) and Rhode Island (1.4) did better.

"New York continues to face challenges in generating business activity and jobs," said state Comptroller Thomas DiNapoli. "There will always be ups and downs, but overall growth significantly below the national average is cause for concern."

DiNapoli, a Democrat from Great Neck Plaza, is the state's chief fiscal officer. He said state leaders "need to look closely at our overall competitiveness and the state's economic development initiatives to ensure we are doing all we can to keep and create good jobs."

Gov. Andrew M. Cuomo's administration launched an advertising campaign, "New York Open for Business," to address perceptions of being a high-tax state.

Cuomo has targeted business aid to growing industries such as biotechnology, food processing and nanotechnology. He also has proposed tax-free zones near SUNY campuses and some private colleges.

Bureau officials said Thursday that the information services sector, including publishing and telecommunications, was "a leading contributor" to economic growth in the Empire State. Wholesale trade, which includes cargo shipping, also was a key driver.

The list of industries that contracted last year was led by health care and social assistance.

GDP for the metropolitan region for 2012 will be released later. In 2011 the economy in the 23-county area that includes Long Island, New York City and portions of New Jersey and Pennsylvania grew 0.8 percent to $1.1 trillion.