Alabama ranked No. 8 for economic momentum

Alabama ranked No. 8 for economic momentum

Alabama ranks No. 8 for economic momentum so far in 2021, according to State Policy Reports, a D.C.-based publication. 

The index ranks states based on their most recent performance in three important measures of economic vitality: personal income growth, employment growth and population growth.

“We’ve worked very hard over the past few years to strengthen the foundations of Alabama’s economy by encouraging business growth and equipping our workers with the skills they need to succeed in the 21st century workplace,” Gov. Kay Ivey said in a written statement. “I believe this ranking shows that Alabama is on the right path for the future.”

Alabama was among 28 states whose Economic Momentum Index score in the First Quarter report exceeded the national average, and its ranking was higher than South Carolina, Georgia, Florida, Tennessee and Mississippi.

According to the written statement, Alabama ranked No. 13 in personal income growth, with a 4.8% gain during 2020, higher than the national average of 4%.

Alabama ranked No. 7 in employment change between February 2020 and February 2021, with a decrease of 3.3%. All states but two showed declines, with the national average dropping 6.5%.

It ranked in the middle of the states in population growth in the one-year period ending July 1, 2020, with a gain of 0.3%, just below the national average.

State Policy Reports is published by Federal Funds Information for States as a subscription service. The FFIS Index of State Economic Momentum report is available here.

Alabama Secretary of Commerce Greg Canfield said the state is poised for additional economic growth with nearly $5 billion in new capital investment tied to business growth projects announced in 2020.

“The robust level of economic development activity recorded in spite of the challenges of the COVID-19 pandemic gives me optimism for the future,” Canfield said. “I’m confident that Alabama’s economy is being re-energized for growth.”

In February, the Alabama Legislature reauthorized two state economic development statutes that serve as the state’s primary industrial recruitment tools – the Alabama Jobs Act and the Growing Alabama Tax Credit. Senate President Pro Tem Greg Reed, R-Jasper, said these bills were the top priority of the 2021 session.

“Our state has provided the tools needed to make Alabama a competitive place to invest and do business,” Reed said. “Bringing good-paying, high-quality jobs and economic opportunity to our state is the number one way we can increase quality of life for Alabamians. For that reason, economic development will continue to be a top priority of our state’s leadership in the future.”