The Holland-Grand Haven and Detroit areas had the fastest growing real gross domestic product in 2011 among 14 metro areas in Michigan.
The Niles-Benton Harbor and Battle Creek areas, however, had some of the biggest decreases among all metro areas nationwide.
“The growth is mixed across metro areas in Michigan, and I would say that most of all, the diversity of the industry mix of the local economies is going to be a key determinant into whether or not the metro area is going to grow or see declines in real GDP,” said Sharon Panek, an economist with the BEA.
Eight Michigan metro areas increased their real GDP from 2010 to 2011, while six contracted, according to data released Friday by the U.S. Bureau of Economic Analysis. On average, the 14 metropolitan statistical areas increased their real GDP by 0.7 percent, compared to a national metropolitan average of 1.6 percent growth.
Real GDP is an inflation-adjusted measure of an area’s gross product that is based on national prices for the goods and services produced within the metropolitan area, according to the BEA.
Michigan had the 6th fastest-growing GDP in the nation in 2011, marking two consecutive years of strong growth after years of declines.
“Similar to what we’re seeing at the national level, the trends in the areas across Michigan were driven by manufacturing and professional and business services,” Panek said.
The Holland-Grand Haven area’s GDP grew 4.2 percent, the biggest increase in Michigan and 21st best among 366 metro areas nationwide. Detroit’s growth of 3.5 percent was second-highest in Michigan and 34th highest in the country. Both have rebounded from double-digit declines in 2009.
“Metro Detroit is more economically tied to how auto sales are doing, so they do way worse than the rest of the country when things are going down, and they do better than the rest of the country when things are going up,” said Alex Rosaen, a consultant with Anderson Economic Group in East Lansing.
Meanwhile, the Niles-Benton Harbor area’s GDP shrunk by 3.1 percent, the biggest decline in Michigan and 8th worst nationwide. Battle Creek didn’t fare much better, dropping 2.3 percent, the 15th worst in the country. The declines come after both areas posted sizable increases in 2010.
Contraction in the natural resources/mining and transportation/utilities sectors contributed to the Niles-Benton Harbor decline. The Battle Creek area saw declines in nondurable goods manufacturing, natural resources/mining and professional and business services sectors.