Wisconsin economy grew 2.8% in 2024, despite slow end to year

Wisconsin’s real GDP grew 2.8% in 2024, one of the strongest years of growth in the past decades, despite slower growth to end the year, according to data from the U.S. Bureau of Economic Analysis.

It was the strongest economic growth for Wisconsin since 2021, when the state grew 3.7% as the economy emerged from the COVID-19 pandemic. Prior to that, the last time Wisconsin’s GDP topped 2.8% was 2010, also a year of 3.7% growth that came in the wake of an economic downturn.

The state’s growth in 2024 ranked 21^st in the country. The second best among nearby states. Indiana led the way with 3.8% growth, ranking 4^th nationally. Michigan was the next state after Wisconsin with growth of 2.1%. Minnesota and Illinois both had growth of 1.1% and Iowa saw a 0.5% decline in GDP.

Sector-by-sector growth breakdown

Retail trade was one of the biggest contributors to Wisconsin’s 2024 growth, adding 0.56 percentage points. Nondurable goods manufacturing contributed 0.41 percentage points and agriculture, forestry, fishing and hunting added 0.37 percentage points. Health care and social assistance added 0.26 percentage points.

Durable goods manufacturing was a slight drag, costing the state 0.08 percentage points of growth.

The strong year of growth came despite a slow fourth quarter when the state’s economy grew at just a 0.7% annualized rate compared to the third quarter. That pace ranked 47^th nationally and was the slowest among nearby states.

Minnesota was the fastest growing nearby state in the fourth quarter with a 2.9% rate that ranked 17^th. Michigan was up 2.1%, Indiana grew 2%, Illinois grew 1.8% and Iowa was up 1.7%.

Wisconsin did get strong fourth quarter growth contributions from construction, nondurable goods manufacturing, wholesale and retail trade, professional, scientific and technical services, and health care and social services.

However, the agriculture, forestry, fishing and hunting sector was a 1.34 percentage point drag on growth during the quarter and durable goods manufacturing was a 0.17 percentage point drag as well.

Despite the stronger year, Wisconsin has grown at only a 1.2% compound annual rate since 2019, just before the onset of the pandemic. That pace ranks 42^nd in the country.

Over the past decade, that growth rate is slightly better at 1.4% since 2014, ranking 35^th in the country.

Since 2004, Wisconsin’s annual growth rate is 1.3%, ranking 37^th in the country.

More articles about the Wisconsin economy:

• Wisconsin lost 2,900 private sector jobs in February
• Wisconsin exports fell by 1.9% in 2024
• More Wisconsin bank CEOs expect improving economy in 2025