Alaska's GDP declines for four years in a row

    Juneau, Alaska (KINY) - Alaska's gross domestic product, the value of all goods and services produced in Alaska, declined again in 2016.

    That's according to Economist Neal Fried  of the state Labor Department's Research and Analysis Unit office in Anchorage.  He says the drop sort of reflects what's happening to the broader economy and the recession the state is in.

    He says Alaska's GDP peaked in 2012 at about 61 billion dollars and has dropped every year since then and hit a low of about 51 billion dollars in 2016.

    Fried says the decline in four straight years is significant. "That has never happened in the past.  The GDP in Alaska has been measured since 1963 and has dropped ten times in its history, but declines never lasted more than a year."

    The economist says  the main reason for this  decline is the drop in the price of oil.

    He says oil makes up 90 percent of the mining sector in Alaska.  Mining still represented about 14 percent of the state's total G-D-P.

    Still, Fried (Freed) says mining has taken a huge hit.  Between 2012 and 2016, the sector's overall value fell by nearly two-thirds, from $21.4 Billion to $7.5 Billion.

    The economist made his remarks on Tuesday's edition of  Action Line.

    His article on the state's gross domestic product appears in the July edition of Alaska Economic Trends.

     

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