Economy of New York (state)

This article is about the overall economy of the New York State. For the economy of New York City, see Economy of New York City.

The economy of the State of New York is reflected in its gross state product in 2022 of $2.053 trillion, ranking third in size behind the larger states of California and Texas. If New York State were an independent nation, it would rank as the 10th largest economy in the world. However, in 2019, the multi-state, New York City-centered metropolitan statistical area produced a gross metropolitan product (GMP) of $US2.0 trillion, ranking first nationally by a wide margin and would also rank as the 10th largest GDP in the world.

Economy of New York

Statistics
GDP	$2.1 trillion (2022)^[1]
GDP per capita	$104,343 (2022)^[2]
Population below poverty line	13.6%^[3]
Gini coefficient	0.502^[4]
Labour force	9,633,503 (2018)^[5]
Unemployment	4.1% (March 2023)^[6]
Public finances
Revenues	$63.5 billion^[7]
Expenses	$54.6 billion^[8]

  New York State unemployment rate, 1976–2021

  US unemployment rate

New York (state) counties by GDP (2021)

The state has a large manufacturing sector, which includes printing and publishing and the production of garments, furs, railroad rolling stock, and bus line vehicles. Some industries are concentrated in upstate locations also, such as ceramics and glass (the southern tier of counties), microchips and nanotechnology (Albany) and the Greater Capital District, and photographic equipment (Rochester). New York's agricultural outputs comprise dairy products, cattle and other livestock, vegetables, nursery stock, and apples. In April 2021, GlobalFoundries, a company specializing in the semiconductor industry, moved its headquarters from Silicon Valley, California to its most advanced semiconductor-chip manufacturing facility in Saratoga County near a section of the Adirondack Northway, in Malta, New York.^[9]

New York City

 

Lower Manhattan, the home of Wall Street, anchors New York City's role as the world's principal financial center.^[10][11]

 

The East Side of Midtown Manhattan, the largest central business district in the world

Main article: Economy of New York City

New York City, characterized as the world's premier financial center,^{[12][13][14][11]} and the surrounding New York metropolitan area dominate the economy of the state. Manhattan is the leading center of banking, finance, and communication in the United States and is the location of the New York Stock Exchange (NYSE) on Wall Street. Many of the world's largest corporations locate their home offices in Manhattan or in nearby Westchester, Nassau, and Suffolk counties. Manhattan contained over 500 million square feet (46.5 million m²) of office space in 2015,^[15] making it the largest office market in the United States,^[16] while Midtown Manhattan, with nearly 400 million square feet (37.2 million m²) in 2015,^[15] is the largest central business district in the world.^[17] New York is a top-tier global high technology hub.^[18]

Long Island

Main article: Economy of Long Island

Long Island has played a prominent role in scientific research and in engineering. It is the home of the Brookhaven National Laboratory. Seven Nobel prizes have been awarded for work conducted at Brookhaven lab.^[19]

Agriculture

Main article: Agriculture in New York

 

Postcard showing the Great New York State Fair main entrance in the 1940s

The Erie Canal, completed in 1825, opened eastern markets to Midwest farm products. The canal also contributed to the growth of New York City, helped create large cities, and encouraged immigration to the state. Except in the mountain regions, the areas between cities are agriculturally rich. The Finger Lakes region has orchards producing apples, which are one of New York's leading crops.^[20] The state is known for wines produced at vineyards in the Finger Lakes region and Long Island. The state also produces other crops, especially grapes, strawberries, cherries, pears, onions, and potatoes. New York is a major supplier of maple syrup and is the third leading producer of dairy goods in the United States.^[21]

According to the Department of Agriculture and Markets, New York's agricultural production returned more than $3.6 billion to the farm economy in 2005. 36,000 farms occupy 7.6 million acres or about 25 percent of the state's land area, to produce a variety of food products.^[21] Here are some of the items in which New York ranks high nationally:

New York is an agricultural leader and is one of the top five states for agricultural products, including dairy, cattle, apples, cabbages, potatoes, beets, viticulture, onions, maple syrup and many others.^[22] The state is the second largest producer of cabbage in the U.S.^[21] The state has about a quarter of its land in farms and produced $3.4 billion in agricultural products in 2001. The south shore of Lake Ontario provides the right mix of soils and microclimate for apple, cherry, plum, pear and peach orchards. Apples are also grown in the Hudson Valley and near Lake Champlain. The south shore of Lake Erie and the southern Finger Lakes hillsides have vineyards. New York is the nation's third-largest grape-producing state, after California and Washington.^[21]

Energy

Further information: New York energy law

In 2017, New York State consumed 156,370-gigawatthours (GWh) of electrical energy. Downstate regions (Hudson Valley, New York City, and Long Island) consumed 66% of that amount. Upstate regions produced 50% of that amount. The peak load in 2017 was 29,699 MW. The resource capability in 2017 was 42,839 MW.^[23][24] The NYISO's market monitor described the average all-in wholesale electric price as a range (a single value was not provided) from $25 per MWh to $53 per MWh for 2017.^[25]

Solar power

This section is an excerpt from Solar power in New York.[edit]

 

Installing rooftop solar panels in Poughkeepsie

Solar power in New York includes the 37 MW Long Island Solar Farm and the 17 MW enXco Eastern Long Island Solar Project,^[26] which consists of seven projects, three at LIRR station carports.^[27]

New York has a renewable portfolio standard of 30% from renewable sources by 2015. In 2015 24% was renewable, 6% short of the goal. Wind is the predominant generating technology.^[28] In 2018, the New York State Energy Research and Development Authority awarded long-term contracts to 22 utility-scale solar farms, totaling a combined capacity of 646 MW.^[29]

In 2012, LIPA adopted a Power Purchase Agreement (limited to 50 MW), which will pay $0.22/kWh for solar generation for installations ranging from 50 kW to 20 MW. A $500 to $5000 application fee favors larger power plants represents roughly the first 10 days of generation for a 50 kW to 500 kW system, but less than 2 hours of generation for a 20 MW installation. The term of the agreement is 20 years, and systems must be interconnected to the grid at the 13.2 kV level. Unlike the feed-in tariff programs in many other places, customers pay for their own electricity as if they were not generating any, making this actually a power purchase agreement, and not a feed-in tariff. LIPA owns the SRECs (which could be worth more than they are paying for the electricity).^[30][31] A bill to establish SRECs in New York failed to pass in 2012.^[32] 50 MW of solar power will meet the average needs of about 7,000 households, or less than 1% of the electricity supplied by LIPA. 5 MW is reserved for systems less than 150 kW, and 10 MW for systems from 150 to 500 kW. The remaining 35 MW is available to systems of all sizes. If fully subscribed in the first year, the average household will pay an estimated $0.44/month to pay for the program, which will generate an estimated 79.4 million kWh/year. Estimated costs are based on an average avoided cost rate of $0.075/kWh, although peak generation costs can exceed $0.22/kWh, eliminating any cost.^[33] LIPA's total generation capacity, in 2011, was 6,800 MW.^[34]

 

Solar Splash, a solar powered boat race

Solar Splash, a solar powered boat race, was held in Buffalo, New York, in 2002.

Wind power

This section is an excerpt from Wind power in New York.[edit]

New York has 2,192 MW of installed wind power capacity as of 2022.^[35] Most of New York's wind power is located in upstate New York as onshore wind farms. New York has set a goal of developing 9,000 MW of offshore installed wind power capacity by 2035 that will power an estimated 6 million homes. As of October 2022, New York has five offshore wind farms in development with approximately 4,300 MW installed capacity.^[36]

References

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2. "New Vintage 2021 Population Estimates Available for the Nation, States and Puerto Rico". New Vintage 2021 Population Estimates Available for the Nation, States and Puerto Rico. United States Census Bureau. December 21, 2021. Retrieved April 10, 2022.{{cite web}}: CS1 maint: url-status (link)
3. . Archived from the original on August 17, 2011. Retrieved December 10, 2017.
4. "U.S. Census website". United States Census Bureau. Retrieved October 10, 2011.
5. Civilian Labor Force in New York
6. "Unemployment Rates for States".
7. . Archived from the original on December 11, 2011. Retrieved December 10, 2017.{{cite web}}: CS1 maint: archived copy as title (link)
8. . Archived from the original on August 23, 2011. Retrieved October 10, 2011.{{cite web}}: CS1 maint: archived copy as title (link)
9. "GLOBALFOUNDRIES Moves Corporate Headquarters to its Most Advanced Semiconductor Manufacturing Facility in New York | GlobalFoundries". globalfoundries.com. April 26, 2021. Retrieved May 19, 2021.
10. Jones, Huw (March 24, 2022). "New York widens lead over London in top finance centres index". www.reuters.com. Retrieved July 29, 2022.
11. "The Global Financial Centres Index 32". Long Finance. September 22, 2022. Retrieved September 22, 2022.
12. "Top 8 Cities by GDP: China vs. The U.S." Business Insider, Inc. July 31, 2011. Retrieved July 29, 2014.
13. "UBS may move US investment bank to NYC". e-Eighteen.com Ltd. June 10, 2011. Retrieved July 29, 2014.
14. Richard Florida (May 8, 2012). "What Is the World's Most Economically Powerful City?". The Atlantic Monthly Group. Retrieved July 29, 2014.
15. Andrew Nelson. "Top CBDs See Solid Growth in 2nd Quarter, US - Canada Performance Diverges" (PDF). Colliers International. Retrieved February 14, 2016.
16. . Officespaceseeker.com. Archived from the original on July 13, 2014. Retrieved July 20, 2014.
17. (PDF). Cushman & Wakefield, Inc. Archived from the original (PDF) on May 8, 2013. Retrieved July 20, 2014.
18. Eisenpress, Cara (April 28, 2023). "New York is closer than ever to beating the Bay Area on tech". Crain Communications. Retrieved June 19, 2023.
19. "Nobel Prizes at BNL". Bnl.gov. Retrieved July 25, 2012.
20. Gelman, Amy. "PEOPLE & ECONOMY: America's Melting Pot." New York (0-8225-4057-6) (2002): 42-53. Book Collection: Nonfiction. Academic Search Complete. Web. 17 Feb. 2016.
21. New York Agriculture Statistic Services. New York Agricultural Statistics 2004-2005 Annual Bulletin. Albany, New York: State of New York Department of Agriculture and Markets, 2004. Web. 19 Feb. 2016.
22. "New York." Funk & Wagnalls New World Encyclopedia (2015): 1p. 1. Funk & Wagnalls New World Encyclopedia. Academic Search Complete. Web. 19 Feb. 2016.
23. (PDF). www.nyiso.com. p. 13. Archived from the original (PDF) on November 1, 2018. Retrieved November 26, 2018.
24. (PDF). www.nyiso.com. April 2018. pp. 11, 12, 14. Archived from the original (PDF) on November 30, 2018. Retrieved November 29, 2018.
25. Chen, Jie; LeeVanSchaick, Pallas; Naga, Raghu Palavadi; Patton, David B. (May 2018). "2017 State of the Market Report" (PDF). www.potomaceconomics.com. pp. ii, 3, A-2, A-6. Retrieved November 30, 2018.
26. Solar in New York State
27. enXco Eastern Long Island Solar Project
28. Final Report of the NYS RPS Annual Performance Report through December 31, 2015
29. "Governor Cuomo Announces Formal Request for New York Exclusion from Federal Offshore Drilling Program". Governor Andrew M. Cuomo. March 9, 2018. Retrieved May 24, 2018.
30. LIPA FIT 2012-10-20 at the Wayback Machine
31. New Jersey SRECs
32. NY SREC market put on hold
33. Feed-in tariff proposal
34. Questions as LIPA fails to use Edge program
35. "WINDExchange: Wind Energy in New York". windexchange.energy.gov. Retrieved October 30, 2022.
36. "2022 Solicitation". NYSERDA. Retrieved October 30, 2022.