South Dakota economy growing at a healthy rate

A report released by the federal Bureau of Economic Analysis (BEA) shows that South Dakota's economy is growing at a healthy rate, Gov. Mike Rounds announced.

According to the BEA, South Dakota's 2006 Gross State Product (GSP) totaled $32.3 billion. That's a 5.9 percent increase from 2005.

"Four years ago, when we established the 2010 Initiative, South Dakotans set the goal to increase our gross state product by $10 billion dollars, from $24 billion to $34 billion," said Gov. Rounds. "This was an aggressive goal, but South Dakotans stepped up to the plate to move the state forward. Our gross state product has increased $8.4 billion since 2001 � well ahead of schedule to meet our $10 billion goal."

Nationally, South Dakota had the 16th highest growth rate. In the seven state Plains Region (IA, KS, MN, MO, NE, ND and SD) South Dakota posted the highest growth rate.

"The gross state product report is an independent confirmation that South Dakota's economic policies are succeeding in improving the lives of our citizens," the Governor said.

Gross state product is the BEA's most comprehensive measure of economic activity in the United States. It is determined by three components: gross operating surplus (business profits before income taxes and without depreciation), wages and salaries (includes benefits), and excise taxes (sales tax, property tax, etc.) less subsidies.