New York surprises to the downside

24/7 Wall Street is reporting on the lowest growing states:

5. New York 

GDP growth: 0.7% 

2013 GDP: $1.3 trillion (3rd highest) 

1-yr. population change: 0.38% (20th lowest) 

2013 unemployment: 7.7% (14th highest)

New York’s economy is one of the largest in the U.S., trailing only Texas and California. The state’s total output exceeded $1.3 trillion in 2013. The financial and insurance industries are among the major industries in the state and have collectively accounted for more than 15% of its output last year. However, the financial and insurance industries were also a drag on growth in 2013, responsible for a more than 0.1 percentage point drop in GDP growth, among the worst figures nationwide for the sector. The government sector also served as a drag on GDP growth, especially troubling in a state with the nation’s highest state and local tax burden, according to the Tax Foundation. Governor Andrew Cuomo has worked to address the state’s fiscal imbalance by cutting spending while also reducing the state’s burdensome taxes.

 I expected to see the Heartland shrink, but New York surprised me as being the 5th lowest growing state.  New York is mostly about dysfunctional government.

They summarize:

Outside of government spending, however, these states’ economies were often very different. For example, the three slowest growing states — Alaska, Maryland and Virginia — were also among the nation’s wealthiest. Meanwhile, Tennessee and Alabama, which had among the lowest median incomes in the nation, also posted weak growth rates last year.

Maryland and Virginia, right next to government goodies land, but they couldn't get a break.  I cannot really make a theme here, it seems mixed.