By Southern Torch Staff

MONTGOMERY, Ala. — On Monday, Governor Kay Ivey announced that Alabama ranks among the top states for economic momentum.

State Policy Reports, a Washington, D.C.-based publication, ranked Alabama No. 8 in its Index of State Economic Momentum for the first quarter. 

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,” Governor Ivey said. “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. Idaho led the way among the states, with Hawaii finishing last.

Here is how Alabama scored in the report’s key metrics:

• Personal Income Growth: Alabama ranked No. 13, with a 4.8% gain during 2020, higher than the national average of 4%.
• Employment: 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%.
• Population Growth: Alabama 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.

Greg Canfield, secretary of the Alabama Department of Commerce, said the state is poised for additional economic vitality, 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,” Secretary Canfield said. “I’m confident that Alabama’s economy is being re-energized for growth.”

State Policy Reports is published by Federal Funds Information for States as a subscription service. Data cited in the State Economic Momentum Index comes from the U.S. Bureau of Economic Analysis, the Bureau of Labor Statistics and the U.S. Census Bureau.

For more information, visit the FFIS website: https://ffis.org/.