Grow Minnesota! Quarterly Economic Snapshot

As we near the two-year mark of the COVID-19 pandemic, Minnesota’s economy remains in unusual territory. In one sense, the state has crossed the full recovery mark, with economic output (GSP), state exports, new business applications, and unemployment levels all returning to their pre-pandemic baseline or better. Like the rest of the U.S. economy, however, Minnesota faces substantial labor market and supply chain challenges that are slowing job recovery and pose new risks to the economic outlook going forward.          

HIGHLIGHTS:

• Minnesota GDP rose to $345.5 billion in the third quarter of 2021, exceeding pre-pandemic levels for the second consecutive quarter. 
• State exports reached $6 billion in Q2 2021 and $5.7 billion in Q3 2021, rebounding from a low of $4.6 billion in Q2 2020.
• New business applications – a leading indicator of new startup activity – surged by nearly 25% during the first 20 months of the pandemic. 
• Unemployment fell to 3.1% in December 2021, a low-point not reached since 2019. 

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