COLUMBIA, Mo. – Missouri’s economy surged ahead in the third quarter of 2024. The state’s gross domestic product grew at an annualized rate of 3.8%, outpacing the U.S. average of 3.1% and ranking 16th nationwide for economic growth during the quarter.

Key sectors driving this expansion included retail trade, health care and professional and technical services, said Alan Spell, University of Missouri assistant extension professor of applied social sciences. By late 2024, Missouri’s economy reached $455 billion, securing its place as the 22nd-largest in the nation.

Retail and health care lead the way

Retail trade was a standout performer, accounting for 33% of Missouri’s growth rate over the past year. “Although slightly below the U.S. share of 35%, this sector remains a powerhouse for the state’s economy,” Spell said. Meanwhile, health care and professional and technical services punched above their weight, contributing 13% to Missouri’s growth, surpassing the national contributions of 11% and 9.4%, respectively. However, not all sectors contributed positively: Education services reduced GDP by 1.6%, and administrative services shaved off another 2.6%.

Urban vs. rural economies: A mixed picture

While the U.S. Bureau of Economic Analysis provides quarterly state GDP estimates, Spell said, more detailed annual county-level data and industry figures for 2023 revealed how economic growth varied across Missouri’s urban and rural areas:

• Urban areas, represented by metropolitan counties, grew 2.6% in 2023, closely mirroring the U.S. metro growth rate of 2.7%. Arts, lodging and food service industries grew by 3.6%, exceeding the national rate of 3.1%. The health care sector grew by 6.5%, outperforming the national rate of 5.3%.

• Rural areas, represented by nonmetropolitan counties, expanded by 2.8%, exceeding Missouri’s metro growth but falling short of the 5.2% U.S. nonmetro average. The tourism-related arts, lodging and food services sector increased 5.7%, more than doubling the national rate of 2.4%. The health care industry grew 6.1%, higher than the national average of 3.5%.

“Sectors like retail trade drove gains in both urban and rural areas, growing by 12% statewide—more than one percentage point higher than the national average,” Spell said. Missouri’s agriculture sector saw significant rural gains, with nonmetro GDP rising 9.7% in 2023, well above the U.S. nonmetro average of 6.1%.

Explore Missouri’s economic trends

For more insights into Missouri’s economy, including county-level GDP data and industry trends, read the latest Missouri Economy Indicator brief at http://muext.us/MEI.

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