Iowa (RI) — A federal report on economic activity shows Iowa’s gross domestic product — or GDP — fell just over six percent in the first three months of the year. The GDP fell in 39 states, but Nebraska and Iowa tied for the biggest drop. Iowa State University economist Peter Orazem (oh-RAH-zehm) has reviewed the data.
The latest figures show about about 36 thousand fewer people are in the Iowa workforce compared to early 2020.
Iowa State University ag economist Chad Hart says the feed grains side of Iowa’s agricultural sector is struggling right now, which has had an impact on ag-related manufacturing.
Hart says the agricultural sector of Iowa’s economy took a hit a few years ago, and then farm income dropped about four percent again in 2024.
The two ISU economists made their comments during a recent appearance on Iowa Press on Iowa PBS. Last week, Governor Reynolds said the recent drop in Iowa’s GDP is linked to declines in Iowa’s ag sector, plus challenges in the state’s financial services and insurance industries. Iowa’s insurance industry accounts for about 11 percent of the state’s GDP.
KIWA Staff Photo
