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Tuesday, Jul 7, 2026

Did SD have country’s lowest GDP growth in early 2026?

Michael Klinski, South Dakota News Watch
yes

South Dakota recorded the nation’s lowest real gross domestic product (GDP) growth rate in the first quarter of 2026, according to government data.

Republican gubernatorial candidate Toby Doeden said Monday that the state’s GDP had the lowest growth in the nation in response to departing Sioux Falls Mayor Paul TenHaken endorsing Gov. Larry Rhoden in July 28 Republican primary runoff.

The U.S. Bureau of Economic Analysis (BEA) reported that three states had negative GDP growth during the first quarter of 2026: South Dakota (-1.6%), Nebraska (-0.9%) and Iowa (-0.1%). Washington state had the highest growth at 4.5%. The BEA attributed the decline to downturns in the agriculture, forestry, fishing and hunting industries.

South Dakota’s GDP was among the nation’s best in the fourth quarter of 2025, however, at 3%. Only North Dakota (3.8%) had a better quarter.

The BEA will release final second-quarter GDP data in September.

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