London Daily

Focus on the big picture.
Friday, Sep 18, 2026

New York's economy is America's worst

New York's economy is America's worst

The US economy is inching back to normal. But the recovery remains uneven and some states are lagging behind in the race to get back to pre-pandemic strength - especially New York.

Although several states' economies have already fully recovered — and are even outpacing — their pre-Covid levels of economic activity, New York is by far the worst-performing state, according to the Back-to-Normal Index created by CNN Business and Moody's Analytics.

The index shows that the US economy as a whole was 93% back to normal as of June 18. But New York was only at 83%, leaving it with the furthest to go to get back into pre-Covid shape.

New York isn't the only state below the 90% mark, though it is at the bottom of the list.

How bad is the Empire State compared to the other 49 states?


In 2019, before Covid hit, New York had the third-strongest economy among US states, lagging only Texas and California. The state's gross domestic product — the broadest measure of economic activity — was nearly $1.8 trillion, on par with the GDP of Italy. More than $1 trillion of that came from economic activity in New York City. The state contributed more than 8% to America's overall GDP that year.

In 2020, New York's GDP dropped to $1.7 trillion. That might not sound like a big difference, but we're dealing in trillions of dollars here. When states that are economic powerhouses underperform, it's not great for the recovery of the entire nation.

New York's GDP contracted by 5.9% last year, a bigger decline than the total US GDP suffered, putting it at No. 47 out of all 50 states for economic growth.

The jobs situation looks even worse. At 7.8% unemployment, New York has one of the highest jobless rates in the nation. US unemployment as a whole stood at 6.1% in April and fell to 5.8% in May.

Why New York lags behind


The biggest factor is the scope of the economic destruction New York City suffered during the height of the pandemic, when it was the epicenter of the outbreak. This led to more severe lockdown protocols than in many other parts of the country.

On top of that, the New York City economy is heavily reliant on service-driven industries. But offices are still mostly empty, and only some workers are commuting. That's bad news for the coffee shops, dry cleaners and lunch spots that support the office infrastructure.

"More specific to New York City is also business travel and tourism that has just stopped," said Moody's Analytics' economist Matt Colyer. It's unclear when those travelers will return.

And the challenges don't end there: One of the components of the Back-to-Normal Index that holds New York back the most is the shortage of restaurant-goers, according to Colyer. The state is still 40% below its pre-pandemic, eat-in diner volume, while the nation as a whole is down only 13%.

"I think with New York lifting its restrictions last week, I would expect for some of that gap to close," Colyer told CNN Business.

The state has been more cautious than most in lifting restrictions to avoid new flare ups of the virus. But the scarring economic effect will be a factor for a while.

Comments

Oh ya 5 year ago
All the demtard states are behind the red states. You get what you vote for

Newsletter

Related Articles

0:00
0:00
Close
TUC Calls for Social Energy Tariff Funded by Higher Taxes on Bank Profits
UK Parliament Enters Conference Recess After Advancing Sovereign Grant Legislation
King Charles Hosts Artificial Intelligence Leaders at Dumfries House Summit
Nearly Seven in Ten UK Small Businesses Delay or Cancel Growth Plans as Costs Rise
Anthropic Details Malicious Use of Claude in Cyber, Weapons and Influence Operations
McLaren Announces £500 Million UK Investment and 1,000 New Jobs
Scotland and Wales Sign Cardiff Agreement to Deepen Cooperation on Shared Policy Priorities
UK Government Moves to Fully Fund Teacher Pay Award as Strike Threat Recedes
UK Competition Regulator Deepens Scrutiny of Microsoft’s Business Software and AI Market Position
NHS England Reforms Focus on Cutting Waiting Lists and Improving Digital Care
England Maintains Mandatory Housing Targets in Push for 1.5 Million New Homes
UK Government Plans Statutory Industrial Strategy Council to Strengthen Long-Term Economic Policy
Asthma Charity Warns of Major Gaps in Childhood Diagnostic Testing Across England
TUC Chief Paul Nowak Appointed to Bank of England Court
Bristol Opens £35 Million Deep-Tech Innovation Hub at Temple Quarter
Oxfordshire Village Votes Symbolically to Leave UK Over Asylum Housing Plan
Andy Burnham Deepens UK Defense and AI Cooperation With NATO and Canada
UK Government Announces Neonatal Safety Reforms After Thirlwall Inquiry
Bank of England Weighs Rate Decision as UK Inflation Rises to 3.1%
UK Health Unions Warn of Staffing Pressures as Public and Private Pay Growth Diverges
Rockstar Games Faces Tribunal Claims From 23 Former Grand Theft Auto VI Developers
UK Treasury Faces Tighter Budget Constraints as Borrowing Costs and Pension Spending Rise
Prime Minister Andy Burnham Sets Out Ten-Year Plan for Greater Public Oversight of Utilities
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
Scotland, Wales and Northern Ireland Leaders Coordinate Push for UK Constitutional Change
Police Tighten Public-Order Measures After Anti-Immigration Protests in Dover and Portsmouth
UK Ministers Pressed for Answers After US Diplomat Accused of Child Abuse Images Leaves Britain
Jaguar Land Rover Pursues NATO Defense Contracts for Defender Vehicles
British Service Member Dies in Road Accident While Deployed in Ukraine
George Osborne Calls for Britain to Rejoin EU Customs Union
Anthropic Chief Dario Amodei Urges Faster UK Action on Advanced AI Risks
UK State Pension Set for 3.9% Rise Under Triple Lock
UK Labour Market Cools as Payrolled Employment Continues to Decline
Reform UK’s £72 Million in Donations Faces Scrutiny Under Proposed Retrospective Funding Rules
UK Doctors Warn Expanded Pharmacy First Scheme Could Put Patients at Risk
British Airlines Cut Short-Haul Capacity as Jet Fuel Costs Rise
UK News Publishers Forecast 40% Search Traffic Drop as AI Overviews Expand
Axel Springer Wins Approval for £575 Million Daily Telegraph Acquisition
London Mayor Sadiq Khan Opposes Heathrow Third Runway Over Climate Targets
Scotland, Wales and Northern Ireland Leaders Hold Summit Seeking Greater Autonomy
UK Energy Price Cap Set to Rise to £1,723 in October
UK Treasury Warns Middle East Conflict Is Threatening Economic Growth
Labour Moves to Retrospectively Cap Overseas Political Donations After Reform UK Funding Surge
HMRC Warns Nearly Seven Million Adults Are Unclear About State Pension Entitlements
UK Parliament Passes Sovereign Grant Reform Before Conference Recess
British Rail Passengers Gain Automatic Right to Switch Operators During Disruptions
Burnham Hosts Downing Street Business Summit as UK Fiscal Pressure Builds
Labour Government Moves to Challenge £72 Million in Reform UK Crypto Donations
UK Advertising Industry Warns Wider Junk Food Rules Could Put £1 Billion in Media Spending at Risk
Cornwall Opens Devolution Talks With UK Government Over Transport and Local Services
×