Real gross domestic product (GDP) is the broadest measure of economic health, and the Cincinnati metro area’s real GDP grew from $89.76 billion in 2011 to $92.15 billion in 2012, according to inflation-adjusted data from the U.S. Bureau of Economic Analysis.
“GDP is a dollar value of everything produced in a year, and it is highly related to the number of jobs in your economy,” said William Even, professor of economics at Miami University. “Generally speaking, you want to see GDP going up because it means we are producing more goods and services, which translates into a higher amount of total income for the area.”
While the economy is not back to where it once was in terms of jobs, it does continue to grow — just not as fast as some people would like, Even said.
“Cincinnati is in the middle and it seems to be matching what the U.S. is doing,” he said. The country’s real GDP grew 2.5 percent in 2012, and like the Cincinnati metro has seen three consecutive years of growth.
GDP numbers are more important in determining how an area is doing economically than job numbers, Even said, because two part-time jobs will be counted the same as two full-time jobs.
“Greater GDP growth is not only a sign that the economy is doing better, but it means a bigger income,” he said. “And higher income means higher consumer spending, and that also leads to more jobs.”
The biggest contributors for the region’s growing economy are professional and business services followed by the leisure and hospitality industry. Retail, education and health, and private industry goods and services all saw at least a percentage point of growth from 2011 to 2012, and most of those industries experienced two years of some growth.
“We have 10 of the fortune 500 corporate offices in our region and that surely is a good sign of both the stability of the area and what big business thinks of our area,” said Joe Hinson, president and CEO of the West Chester-Liberty Chamber Alliance.
He said growth is high between Interstate 275 in Northern Kentucky and Interstate 675 in Dayton, but it’s also diverse.
“We’ve got some key educators in this area,” said Hinson, including Miami University, University of Cincinnati, Cincinnati State Technical & Community College and Northern Kentucky University. “Staying competitive, continuous learning and workforce development are key to this area.”
But Hinson said that doesn’t include this area of the Cincinnati region’s top growth area of health care.
“It continues to grow in this corridor, and it’s not a monopoly and will continue to grow,” he said. “This industry is not only the most competitive but is becoming the most extensive.”
But resting on laurels is not something the metropolitan area can afford to do, Hinson said.
“I think the important thing here is you need to continue to strive, to improve, to get better today and not when it’s a dire need when things are going in the opposite direction,” he said. “We need to make sure we are strategic in our growth and to not make sure it takes off where it’s out of control.”
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