Connecticut Economy

Connecticut Economy

The economy of Connecticut turned strong since the early 19th century. This was because, at that time the state was slowly becoming incapable of supporting its growing population through agricultural pursuits only. To overcome the deteriorating situation, Connecticut turned to various non-agricultural ways of life. The result was an overwhelming renaissance in the economic growth of the country.  Now, the service industries generate most of the revenue of the state. Manufacturing also is as important.

The major economic industries of Connecticut are:

Connecticut Agriculture

The main agricultural products of Connecticut are:

  • Crops – The major agricultural crops grown in Connecticut are, Greenhouse and nursery products like ornamental shrubs and flowers. In fact, most of the state’s revenue is generated through these only. Tobacco, rice, and hay are the leading cash crops of the state.
  • Livestock - Dairy products (milk) and poultry eggs are produced in abundance. Oysters are cultivated in lakes; cattle, calves, and hogs are the other livestock products of the state.

Connecticut Manufacturing

  • Connecticut has been the fore-runner in the manufacturing of aircraft engines and parts, submarines, helicopters for military use mainly, and machineries like, computers, printing tools, typewriters, electronic instrumentation, electrical equipments and optical instruments.
  •  It is also leading in the production of guns and ammunition.
  • Other important products by the manufacturing industry includes fabricated metal products like cutlery, hardware, bearings, nuts, bolts, rivets, etc.
  • In the 1840s and 1850s, shipbuilding and whaling were major industries, and they still, contribute a considerable part to the Connecticut economy.

Connecticut Mining

  • Crushed stone, sand, and gravel are the major mining products that help in the growth of the Connecticut economy.

Connecticut Services

  • The largest industries that are the backbones of the economic growth of Connecticut are finance, insurance and real estate. Hartford, the capital of the state, is the main insurance center.
  • Personal service industries like private health care, engineering and law firms, computer and data processing services follows soon after, and offer major contributions in the economic growth.
  • Automobile dealerships, restaurants, fuels, timbers are also various upcoming service industries.

Connecticut Tourism

  • The tourism industry of Connecticut is also very important part of the growth of Connecticut. The small and quiet city in the summer is a beautiful treat itself to the eye. Nevertheless, it is impossible to forget the charms of the places like the Wadsworth Athenaeum, Heublein Tower, the Mystic & Southeastern Shoreline, the Strawberry Park Resort Campground, the Florence Griswold Museum, the Timexpo Museum, the Cursed Dudleytown and many more, that compels the tourists to come over and over again to the place. Tourism, thus, forms a very important part of Connecticut economy.

Some Trivia about the Economy of Connecticut

  •  
    • Different types of defense production have been a very important part of the economy of the state, so the economy curve fluctuates greatly with international tensions.
    • The unemployment rate of Connecticut was 8.7% in 1949, but in considerably dropped to 3.5% in 1951 during the Korean conflict. But, again, after the war, it rose again to 8.3% in 1958. During the Vietnam War, unemployment rate was between 3.1% and 3.7%. In 1976, it however, subsequently rose to 9.5%. During the Reagan administration's military build-up in 1984, the unemployment rate of Connecticut dropped below 5%. This is the lowest that the country has seen so far.
    • Connecticut began to move its economic growth to other sectors than the defense sector as wells during the 1980s and 1990s. In 1984, 30,000 Connecticut workers were employed in 250 international companies.
    • Between 1984 and 1991, the manufacturing of the various military products declined to 22.4%; on the other hand, nonmanufacturing jobs saw a rise of 11.6%.
    •  In 1993, the unemployment was 7.3% of the total population. It however, became as low as 3% by the end of 1999; the ratio of manufacturing jobs declined to a great extent than jobs in other sectors.
    • Gross state product was 5.7% in 1998, and 4.4% in 1999. It soared as high as 8.7% in 2000.
    • In the recession of 2001, the growth was very low - only 2.6% - and unemployment began to raise its ugly head again. The unemployment percentage rose from 3.5% in June to 4.4% November in 2002.
    • In 2001, the economy of Connecticut saw a boom, and it had the 22nd largest gross state product among the states, that summed to a total of $166.2 billion with the financial services, insurance and real estate contributing $51.5 billion, general services,$35.7 billion), the manufacturing sector contributing $24.3 billion and the government sector, $15 billion and transportation and utilities contributing $9.8 billion towards the Connecticut economy.

Connecticut Taxation

Income Group Range Average Income in Group
Lowest 20% Less than $13,000 $8,300
Second 20% $13,000-$21,000 $16,000
Middle 20% $21,000-$36,000 $27,600
Fourth 20% $36,000-$58,000 $46,000
Next 15% $58,000-$108,000 $76,400
Next 4% $108,000-$229,000 $146,000
Top 1% $229,000+ $682,000

Connecticut Tax Returns

  ($000) Per Capita
Total Taxes 9,032,787 2,610.25
Property taxes (X) (X)
Sales and gross receipts 4,516,123 1,305.05
General sales and gross receipts 3,043,971 879.63
Selective sales taxes 1,472,152 425.42
Alcoholic beverage 41,619 12.03
Amusements 365,010 105.48
Insurance Premiums 207,445 59.95
Motor fuels 424,669 122.72
Pari-mutuels 7,339 2.12
Public utilities 166,580 48.14
Tobacco products 158,348 45.76
Other selective sales 101,142 29.23
Licenses 404,522 116.9
Alcoholic beverages 5,874 1.7
Amusements 67 0.02
Corporation 17,006 4.91
Hunting and fishing 2,583 0.75
Motor vehicle 240,604 69.53
Motor vehicle operators 33,803 9.77
Public utility 300 0.09
Occupation and business, NEC 100,361 29
Other 3,924 1.13
Other taxes 4,112,142 1,188.31
Individual income 3,685,244 1,064.94
Corporation net income 149,454 43.19
Death and gift 159,819 46.18
Documentary and stock transfer 117,625 33.99
Severance (X) (X)
Other (X) (X)