The economy in the Rapid City metropolitan region outpaced the average of other metro areas in the United States and grew faster than Sioux Falls in 2011, according to a new report by the U.S. Bureau of Economic Analysis. Overall, the economy expanded by 1.9 percent in Rapid City, compared to 0.9 in Sioux Falls. Meanwhile, the national average among the nation's 366 metropolitan areas was 1.6 percent.

Although the Rapid City economy ranked 272nd among the nation's metropolitan areas, the area's growth rate placed 103rd. 

Four sectors contributed the most to the region's economic growth: natural resources and mining (up 0.46 percent), financial activities (up 0.42 percent), government (up 0.34 percent), professional and business services (up 0.27 percent), and trade (up 0.26 percent). Declining sectors included transportation and utilities (down 0.30 percent) and information (down 0.12 percent). 

Economic growth in 2011, however, did not keep pace with 2010 when the total value of goods and services produced in the Rapid City metropolitan region grew by an estimated 2.6 percent. This growth followed a 0.6 percentage decline in 2009 (based on revised figures from the Bureau of Economic Analysis). With this growth, the Rapid City metropolitan area ranked 133rd among the fastest-growing urban economies in the nation. Regionally, Rapid City surpassed Sioux Falls (up 2.3 percent), Billings (up 0.4 percent) and Casper (down 3.8 percent). Only Bismarck (which was up 5.1 percent), showed stronger growth. For a graph that allows you to see how Rapid City compares to other metropolitan regions in the United States, click here.

In 2009, the BEA reported that the Rapid City metropolitan region's economy was led by financial services (up 3.1 percent), government (up 1.0 percent) and trade (up 0.5 percent) fueled the relative success of the metropolitan area’s businesses and government institutions. Meanwhile, all other sectors of the economy declined in the face of the national recession. The sharpest decreases were in transportation and utilities (down 0.9 percent) and durable goods manufacturing (down 0.5 percent), but even these decreases were relatively mild compared to the national trend.

For access to the September 13, 2011 data release from Bureau of Economic Analysis, U.S. Department of Commerce, click here.  To compare this release to the February, 2011 release of 2009 data, click here. To find gross domestic product data for all metropolitan areas in the United States for 2007-2010, see this October, 2011 report from the U.S. Bureau of Economic Analysis. 

Below is a graph representing the Gross Domestic Product earnings of major metropolitan areas surrounding the Black Hills, which include Rapid City, Sioux Falls, Billings, Casper, Cheyenne, Fargo, and Bismarck.

Source: U.S. Bureau of Economic Analysis - www.bea.gov/newsreleases/regional/gdp_metro/2011b/pdf/gdp_metro0211bpdf

The graph shown below was made using the data displayed in the graph on Annual GDP from above.  It represents the percent change in GDP in each metropolitan area surrounding the Black Hills from the years 2008-2010.  Every city except Billings has experienced increases in GDP as well as decreases.  Casper has seen the most dramatic change in their annual GDP for the specified years with a 12.8 percent increase from 2008 to 2009 and dropping to a -3.8 percent decrease from 2009-2010.  For more information on what caused GDP growth in 2011 check out this link to a graph explaining the 2011 trend.

Source: U.S. Bureau of Economic Analysis - www.bea.gov/newsreleases/regional/gdp_metro/2011b/pdf/gdp_metro0211bpdf