Once Symbols of the American Dream, These Towns Are Quickly Fading Away

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By Sam Stebbins Published Feb 4, 2025 at 9:23 AM EST

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Once Symbols of the American Dream, These Towns Are Quickly Fading Away — © Kim Grosz / iStock via Getty Images

With the sole exception of 2020, the year large segments of the U.S. economy were shut down to prevent the spread of COVID-19, American gross domestic product increased every year since 2009. This consistent, year-over-year expansion reflects the strength and resilience of the U.S. economy, as GDP growth is perhaps the single most comprehensive measure of overall economic health.

24/7 Wall St. Key Points:

Among similarly wealthy, highly developed countries, the U.S. economy — as indicated by GDP growth — has been relatively healthy in recent years.
Not all parts of the country have followed this trend, however, and in nearly every state, there are cities and towns suffering through economic contractions.
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GDP growth can fuel virtuous economic cycles, as it often results in higher wages, reduced unemployment, improved corporate profits, and greater investor confidence. Indeed, in recent years, wages have been rising, unemployment has been at historic lows, and major stock indices have hit record highs.

But while the U.S. economy as a whole has been steadily growing — and even outperforming many other similarly wealthy, highly developed countries in recent years — the rising tide has not necessarily lifted all ships. In the last year alone, cities and towns across the country have broken with the broader trend and reported economic contractions.

Using data from the Bureau of Economic Analysis, 24/7 Wall St. identified the fastest shrinking local economy in each state. We reviewed data on change in GDP from 2022 to 2023 in every U.S. county or county equivalent and identified the place in every state that reported the largest economic contraction. In four states – Connecticut, New Hampshire, New Jersey, and Rhode Island – no county reported a lower GDP in 2023 than in 2022. In these states, the county with the weakest economic growth is listed. Rankings are based on real GDP figures chained to 2017 dollars. Supplemental data on population and median household income are from the U.S. Census Bureau’s Population Estimates Program and American Community Survey.

Among the four states where no county reported a GDP contraction, economic growth rates in the counties on this list were relatively weak, all coming in below 1%. In the 46 remaining counties and county equivalents on this list, reported economic contractions range from 0.1% to well over 30%.

Just as economic growth can often be triggered by a growing population, declines in GDP can be precipitated by population decline. Among the 50 counties on this list, 22 had a smaller population in 2023 than they did in 2022. (Here is a look at the U.S. cities people are fleeing.)

Fortunately, economic decline does not appear to have had an overly negative impact on household finances in most places on this list. There are only six counties on this list where the median household income declined between 2022 and 2023. (Here is a look at the richest county in every state.)

This is the fastest shrinking local economy in every state.

Why It Matters

Change in gross domestic product over time is perhaps the most comprehensive and widely cited indicator of overall economic health for any country or region. And by this measure, the U.S. has outperformed many of its peers on the world stage in recent years. Still, positive national GDP growth does not reflect economic conditions in many American cities and towns. In nearly every state, there is at least one county that reported an economic contraction in 2023.