NC’s GDP increases by 5.6% in 3rd quarter

“This is 1.2 points greater than the country’s GDP and shows that our economy here in North Carolina is strong.”-Brian Hamilton, founder of Inmates to Entrepreneurs

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The US Bureau of Economic Analysis (BEA) recently released third-quarter numbers for 2025, showing a gross domestic product (GDP) increase of 5.6% for North Carolina.

“In the third quarter of 2025, North Carolina’s economy outperformed the nation, with real GDP growing at a 5.6% annualized rate, well above the 4.4% national rate, while personal income in the state rose 3.8%, compared with 3.3% nationally,” Joseph Harris, fiscal policy analyst for the John Locke Foundation, told the Carolina Journal. “This performance builds on years of pro-growth tax reform, including reductions in corporate and personal income tax rates, that have strengthened North Carolina’s economic competitiveness.”

According to data from the BEA, North Carolina achieved a $900 billion GDP for the first time, which is 75% higher than the GDP during the same period ten years prior.

“This is 1.2 points greater than the country’s GDP and shows that our economy here in North Carolina is strong,” said Brian Hamilton, founder of Inmates to Entrepreneurs. “However, the growth continues to be driven by large metro areas, and there is still a great imbalance between areas like Raleigh-Durham and rural areas, where growth is stagnant.”

Of the 5.6% increase, 0.19% of that increase is attributable to agriculture, forestry, fishing, and hunting industries. Agriculture is the No. 1 industry in North Carolina, generating $111.1 billion annually. Durable goods manufacturing contributed 0.42% to the the state’s overall GDP.

Additionally, North Carolina saw a 3.8% increase in personal income in the third quarter, 0.5% above the national increase of 3.3%. Personal income encompasses earnings, transfer receipts, and property income.

These figures reflect quarterly growth, explained Harris, which the Bureau of Economic Analysis annualizes to show what the pace of growth would look like if it continued for a whole year.

Despite economic growth, the labor market has seen a significant slowdown in growth. According to the North Carolina Department of Commerce (NCDOC), two-thirds of North Carolina’s 15 metro areas, and 50 of the state’s 100 counties, had fewer jobs in June 2025 than they did a year earlier.

As of October 2025, the US Chamber of Commerce characterized North Carolina’s labor shortage as “severe,” with only 76 available workers for every 100 open jobs. There are 257,000 open positions and a labor force participation rate of 59.2%.

“NC’s GDP increases by 5.6% in 3rd quarter” was originally published on www.carolinajournal.com.