In 2021, the gross state product of West Virginia was $72.48 billion, an increase from $69.71 billion in the previous year."Real Gross Domestic Product (GDP) of the federal state of West Virginia from 2000 to 2021" Statista. West Virginia's unemployment rate in August 2019 was 4.6%, the lowest since the start of the Great Recession. As a result of the COVID-19 pandemic, West Virginia's unemployment rate rose to 6.1% in December 2020."Unemploymenty Rates by County October 2022" Workforce, West Virginia Dept. of Commerce. By November 2022, the unemployment rate returned to its pre-pandemic level of 4.1%."County Data Release 12/21/22" Workforce, West Virginia Dept. of Commerce.
Overview In 2009, the economy of West Virginia was projected to be the 62nd largest economy globally, placed behind Iraq and ahead of Croatia, according to the 2009 World Bank projections."The World Bank: World Development Indicators database", World Bank. September 27, 2010. Accessed December 11, 2010. It was also projected to be the 64th largest economy behind Iraq and ahead of Libya according to 2009 International Monetary Fund projections."Report for Selected Countries and Subjects", International Monetary Fund. October 2010. Accessed December 11, 2010 The state had a projected nominal GDP of $63.34 billion in 2009 according to the Bureau of Economic Analysis report of November 2010, and a real GDP of $55.04 billion. The real GDP growth of the state in 2009 of 0.7% was the 7th best in the country. West Virginia was one of ten states in 2009 with economic growth.
In 2009, while per capita income growth fell 2.6% nationally, West Virginia's rose at 1.8%. Through the first half of 2010, exports from West Virginia topped $3 billion, growing 39.5% over the same period from the previous year and ahead of the national average by 15.7%.
Personal income growth in West Virginia during 2013 was only 1.5%—the lowest in the nation—and about half the national average of 2.6%. Overall income growth in West Virginia over the last 30-year period ending in 2013 was only 13% (about one-third of the national average of 37%). Wages of the impoverished bottom 1% income-earners decreased by 3%, compared to the national average, which increased by 19%.
The net corporate income tax rate is 6.5%, while business costs are 13% below the national average.
Appalachian Regional Commission
The Appalachian Regional Commission was formed in 1965 to aid economic development in the Appalachian region, which was lagging far behind the rest of the nation on most economic indicators. The Appalachian region as defined by the Commission includes 420 counties in 13 states, including all 55 counties in West Virginia, the only state whose entire territory is covered by the Appalachian Regional Commission. The Commission gives each county one of five possible economic designations—distressed, at-risk, transitional, competitive, or attainment—with "distressed" counties being the most economically endangered and "attainment" counties being the most economically prosperous. These designations are based primarily on three indicators: three-year average unemployment rate, market income per capita, and poverty rate.
In 2003, West Virginia had a three-year average unemployment rate of 5.7%, compared with 5.5% nationwide. In 2002, West Virginia had a per capita market income of $17,856, compared with $26,420 nationwide. In 2000, West Virginia had a poverty rate of 17.9%, compared to 12.4% nationwide. Fifteen counties in West Virginia were designated "distressed", and sixteen counties were designated "at-risk". No county received the "attainment" designation, and only two (Jefferson and Putnam) were designated "competitive". Nineteen counties were designated "transitional", meaning they lagged behind the national average on one of the three key indicators. McDowell County had West Virginia's highest poverty rating (and the third highest in the entire Appalachian region), with 37.7% of its residents living below the poverty line. Kanawha County had West Virginia's highest per capita income at $25,170, and Monongalia had West Virginia's lowest unemployment rate at 2.7%.
Industries West Virginia's major economic industries include energy, mining, manufacturing, advanced technologies, healthcare, and tourism. As of 2022, the largest employers in West Virginia are WVU Medicine, Walmart, CAMC Health, Mountain Health Network, Kroger, Lowe's, Contura Energy, Mon Health, American Consolidated Natural Resources, and Mylan Pharmaceuticals."West Virginia's 100 largest Private Employers in March 2022" Workforce, West Virginia Dept. of Commerce.
Research and development and advanced tech
Through 2008, advanced technology industries employed 45,284 West Virginians, constituting 5.6% of the economic establishments in the state. Through 2007, roughly 5.11% of the total population (91,998 citizens of the state aged 25–44) held bachelor's degrees or higher. West Virginia receives annually around $261 million in federal research and development (R&D) funds, ranking 34th in the nation. Private establishments receiving the most federal R&D contracts in 2009 were Prologic, Inc. based in Fairmont, Security Assistance Corporation, Alliant Techsystems, Inc. in Ridgeley, STS International in Berkeley Springs, and the West Virginia High Technology Consortium Foundation (HTC) also in Fairmont."West Virginia R&D 2010", The Alliance for Science & Technology Research in America. 2010. Accessed December 11, 2010
The state is home to federal institutions such as branches of the National Energy Technology Laboratory and Forestry Science Laboratory in Morgantown, the Leetown Science Center and National Center for Cool and Cold Water Aquaculture, National Radio Astronomy Observatory in Green Bank, the Forest Service Timber and Watershed Laboratory in Parsons, the Appalachian Farming Systems Research Center in Beckley, West Virginia District Office of Water Resources in Charleston, and Department of Veterans Affairs R&D units in Clarksburg and Huntington."Federal Research and Development in West Virginia", Rand Corporation. Accessed December 11, 2010
West Virginia University is home to research institutions such as the Blanchette Rockefeller Neurosciences Institute, Robert C. Byrd Cancer Research Laboratory, Center for Identification Technology Research, and the National Research Center for Alternative Fuels, Engines, and Emissions.
The Mid-Atlantic Technology, Research, and Innovation Center (MATRIC) is headquartered in South Charleston.
In December 2010, the West Virginia Higher Education Policy Commission began a $23 million renovation of a research park formerly home to the Dow Chemical Company."$23M renovation project scheduled at tech park", Eric Eyre. West Virginia Gazette. December 14, 2010. Accessed December 18, 2010
Energy West Virginia's economy depends heavily on its mineral resources, meaning the declining coal production and low energy prices in recent years have shrunk the state's economy. Mining safety and ecological concerns are also major challenges to West Virginia, which still produces the majority of the coal used in the U.S.
West Virginia is considered a national energy hub, leading the nation in net interstate electricity exports and underground coal mine production, while experiencing a growing natural gas industry as a result of the Great Shale Gas Rush. Overall, it produces 15% of the nation's fossil fuel energy. The state's underground natural gas storage represents 6% of the nation's total, and according to 2008 estimates it has 5.1 billion cubic feet of natural gas reserves overall.
West Virginia was one of the first states to drill for oil. Small to medium oil and natural gas fields still exist and are scattered mostly in the Allegheny Plateau and the Cumberland Plateau in an arc throughout the western part of state. The state produces around 180,000 barrels of oil per month, with 23 million barrels of reserves through 2008 estimates.
The state has a growing renewable energy portfolio, anchored by chemical and biodiesel manufacturer AC & S, based in Nitro.
Some of the largest employers in the state are companies in the energy and mining sectors. In 2009, Columbus-based American Electric Power was the fifth-largest employer in the state, followed by Consolidation Coal Company (#9), Allegheny Energy Service Corporation (#19), Eastern Associated Coal Corporation (#31), and others."West Virginia's Largest Private Employers for March 2009", West Virginia. September 10, 2009. Accessed December 11, 2010
Coal Coal is one of the state's primary natural resources, first discovered in the state in 1742. The industry employs 30,000 West Virginians directly, resulting in $2 billion in wages and a $3.5 billion economic impact. West Virginia is the largest coal producer east of the Mississippi River, and accounts for 10% of the nation's production. It leads the nation in coal production from underground mines, and has the nation's second-largest reserves behind Wyoming.
Much of the mined coal is transported on the state's extensive network of railroads. The railways were once one of the largest customers for coal to fuel steam locomotives, but these have been replaced by diesel locomotives. Coal is rarely used now for home heating. Most coal today is used by power plants to produce electricity, both in West Virginia, and in other eastern states.
West Virginia coal exports declined 40% in 2013, representing a decrease of $2.9 billion in export sales. As of 2017, the coal industry accounted for 2% of state employment.
West Virginia has an annual 13 million barrel coal-to-liquid fuel production capacity.
Alternative energy
The state has a growing renewable energy portfolio, anchored by chemical and biodiesel manufacturer AC & S, based in Nitro. The National Research Center for Alternative Fuels, Engines, and Emissions is located in Morgantown.
Mountaineer Wind Energy Center, located in Preston County and Tucker County and built in 2002, was the first wind farm in the state. The Beech Ridge Wind Farm is a $300 million, 119 turbine project currently under construction in Greenbrier County. The Mount Storm Wind Farm is located in Grant County and operates 132 turbines.
West Virginia is home to several hydroelectric facilities, including Honeywood Dam on the Potomac River, Cheat Lake Dam in Monongalia County, and Summersville Dam on the Gauley River.
Google has invested in research exploration of the state's geothermal reserves."Google warms to West Virginia's vast geothermal potential", Danny Bradbury. Business Green. October 7, 2010. Accessed December 11, 2010
Aerospace Major aerospace employers in the state include Pratt and Whitney located in Bridgeport, Lockheed Martin in Clarksburg, United Technologies in Union, Canada-based Bombardier Aerospace in Bridgeport, Alliant Techsystems, FCX Systems in Morgantown, and FMW Composite Systems and Aurora Flight Sciences of West Virginia in Bridgeport.
Healthcare and education
In 2009, West Virginia University Healthcare alone had an economic impact of $2.2 billion on the state and was the #23 employer."WEST VIRGINIA'S ECONOMIC ENGINE", West Virginia University Healthcare. 2010. Accessed December 12, 2010 West Virginia United Health System was the #2 employer in 2009, ahead of Charleston Area Medical Center (#3), St. Mary's Hospital (#7), Cabell Huntington Hospital, Inc. (#12), Wheeling Hospital (#14), and Camden-Clark Memorial Hospital (#24).