If Connecticut were measured as its own entity — apart from the United States — it would boast the 38th largest economy in the world.
For a small country of 5,500 square miles, the Nutmeg Nation would do pretty well for itself — economically-speaking — with a $237.3 billion gross domestic product.
“That’s phenomenal for a place of 3 million people,” said Fred Carstensen, director of the Connecticut Center for Economic Analysis.
Yes, Connecticut’s economy would bump suffering Portugal and emerging Hong Kong each down a notch, moving into the ranking of world economies just behind stagnant Finland and booming Malaysia.
And what a New England country Connecticut would be. The biggest portion of the Nutmeg Nation’s GDP comes from the finance and insurance sector, ringing in at $45.9 billion in 2010, according to the U.S. Bureau of Economic Analysis.
That $45.9 billion Connecticut industry in itself is larger than the entire GDPs of 60 percent of the nations in the world.
The next three biggest sectors of the Connecticut economy — real estate, rental and leasing ($33.9 billion), manufacturing ($25.9 billion) and government ($23.7 billion) — also in of themselves are bigger than the entire GDPs of half of the world’s countries.
“Connecticut is a state with a rich, rich history in commerce and manufacturing,” said Peter Perez, deputy assistant secretary in the U.S. Department of Commerce’s International Trade Administration Office of Manufacturing.
The most impressive aspect of Connecticut as a country is its productivity, said Demetrious Giannaros, owner of economic consulting firm Giannaros Associates.
When looking at nations with a GDP similar to ours — Finland, Malaysia, Portugal and Hong Kong — Connecticut has a much smaller population — 3.6 million people. Finland’s population is 48 percent bigger than Connecticut’s while Malaysia’s is 700 percent bigger.
From an economic point of view, GDP per capita is the best measure of a nation’s economy, Giannaros said.
Using Connecticut’s GDP per capita — $65,917 — the Nutmeg Nation has the No. 5 best economy in the world, ranking behind Luxembourg, Norway, Qatar and Switzerland. Connecticut would be ahead of the United Arab Emirates, Denmark, Australian and Sweden.
“Even though we go through these cycles of low growth and high unemployment … we are still a permanent economy that creates a lot of growth and a lot of wealth with a high standard of living,” Giannaros said.
The Nutmeg Nation’s internationally trading partners are more diverse than most nations. While top trading partners for countries such as Finland, Malaysia and Portugal tend to be on their own continent, Connecticut’s top trading partners touch the corners of the world — France, Canada, Germany, Mexico, China.
Connecticut’s most significant export is manufactured, rather than a natural resource. The top export is transportation equipment, such as airplane parts, while the significant exports from Finland, Malaysia, Portugal and Hong Kong are timber, petroleum, wine and toys, respectively.
“In general, you can be assured that the products we make here are exactly what they are advertised to be — of the highest quality,” Perez said.
Connecticut’s standing as the 38th biggest economy in the world in terms of overall GDP is dependent, of course, on the rest of the states not being counted separately. Among the states, 22 have a higher GDP than Connecticut, so if they are added to the calculation, the Nutmeg Nation would be No. 60 in the world.
But, looking at nations with a GDP similar to ours, Connecticut might be moving up in the world.
Finland, with the 36th biggest economy at $239.2 billion GDP, grew 0.3 percent in 2010, according to the International Monetary Fund.
Connecticut’s GDP, by comparison, grew 4.3 percent in 2010.
Malaysia is doing a little better than Connecticut, ranking 37th with a $238 billion GDP,. That’s up 23.3 percent in 2010.
Portugal is headed in the wrong direction. Its $229.3 billion GDP puts it at No. 38 in the world (or No. 39 when Connecticut is counted), but that’s down 2 percent from the previous year.
Hong Kong, like Malaysia, appears poised for some good years. Although technically a segment of China, IMF ranks its GDP separately because of Hong Kong’s separate system of government and commerce. Hong Kong’s GDP grew 7.5 percent in 2010 to $225 billion, putting it 39th in the world (or 40th, again, if Connecticut is counted).
