South Carolina posted the strongest economic performance in the nation for the first quarter of 2025, according to new data from the Bureau of Economic Analysis. The Palmetto State’s real GDP grew by 1.7%, outpacing every other state despite a national average decline of 0.5%.
Neighboring states saw mixed results. North Carolina recorded a 0.8% increase, while Georgia’s GDP was essentially flat at 0.1%. Tennessee experienced a decline of 1.2%, and Florida saw the second largest growth of 1.4%. Regionally the Southeast saw the highest growth and the Plains states so the largest decline.
Economists attribute South Carolina’s growth to strength in industries such as manufacturing, logistics, and services, as well as steady consumer spending. Nationally, 16 out of 23 industries contracted, with finance, insurance, agriculture, forestry, fishing, hunting, and wholesale trade posting the largest declines.
Top 5 States – Q1 2025 Real GDP Growth
- South Carolina – 1.7%
- Florida – 1.4%
- Alabama – 1.0%
- North Carolina – 0.8%
- Arkansas – 0.8%
Lowest 5 States – Q1 2025 Real GDP Growth
- Nebraska – -6.1%
- Iowa – -6.1%
- Montana – -4.4%
- Kansas – -3.3%
- Wyoming – -3.1%
South Carolina’s standout growth comes as much of the nation faces economic headwinds, positioning the state as a leader in economic resilience entering the rest of 2025.
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