Massachusetts’ gross domestic product grew 2.4% in 2025, ranking 11th nationally and outpacing U.S. growth of 2.1%.
The state’s total GDP was $650 billion at the end of 2025, according to data released Thursday by the U.S. Bureau of Economic Analysis.
Massachusetts saw the most economic growth of any New England state in 2025. South Carolina and Florida led the nation in GDP growth last year at 3.1%.
Massachusetts’ GDP grew 1.2% in the fourth quarter. That growth ranked 12th in the nation, but lagged behind Massachusetts’ third-quarter GDP growth of 3.3%.
The fourth-quarter figure was the lowest of 2025 and the weakest since the fourth quarter of 2024, when GDP shrank 2.2%.
Quarterly growth was weighed down by declines in federal contributions to GDP, while private industry contributions rose 1.7%.
Government enterprise contributions to Massachusetts GDP fell 0.5% in the fourth quarter, the largest decline in that sector since at least 2005. Federal civilian enterprise contributions dropped 0.46%, while state and local contributions rose 0.07%.
Fourth-quarter GDP growth was led by the information sector (0.8%) and wholesale trade (0.6%). Both industries accelerated their growth from the third quarter.
Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the real estate and banking & finance industries.
