Delaware Economy

Delaware Economy

DELAWARE, one of the most prosperous state of the US has an accelerating growth rate since the 1970s from  4.5% in 1998 to 8.75% in 2001.

The main contribution to the state's economy were made primarily by the chemical and automotive industries with a gross state product from 16.5% (1997) to 12.9%(2001). A contribution by the finance, insurance and real estate sector (FIRE) was 43% and 15.3% from general services like hotels, auto repair, personal ,legal, health, education etc.

A negative growth with the largest employers in the manufacturing sector was seen, chemical industries with net decline of 2.6% and the automobile industries with a fall of 34%. On the contrary,  financial services grew 43% along with a growth of general services at 36.4%.
There is a gain of 17% in the population of the state from the year 1991 to 2001.

The job creation in various sectors:

  • Manufacturing- From a positive 2% in 1999 to negative(net layoffs) by 2000.
  • Finance, insurance and real estate (fire)-From a positive 2%-3% to negative 4% in 2002.

In the year 2001, Delaware State’s gross product was $40.5 billion. Gradually it grew by 29.6% in the year 1997 and then it increased up to $49 billion in the year 2003. Due to this growth, state ranked 9th in the nation and statistics showed $34,199 of per capita income. In the year 2005, $937 was the average weekly wage and it used to rank 7th in the nation.

The major contributions made by different sectors to gross state product:-

  • Financial services: $17.5 billion
  • General services: $6.2 billion
  • Manufacturing: $5.2 billion
  • Wholesale and retail trade: $4.3 billion
  • Government: $3.4 billion
  • Transportation and public utilities: $1.9 billion

Delaware Agricultural Output of the State

2.Nursery stock
4.Dairy product and corn

Delaware Industrial Output of the State

1.Chemical products
3.Processed foods
4.Paper products
5.Rubber and plastic products

The Largest Employers of the State

(a) Government (State of Delaware, New Castle County)
(b) Education (University of Delaware)
(c) Banking (Bank of America, Deutshe Bank, Barclays plc)
(d) Chemical and pharmaceutical companies (AstraZeneca, Hercules, Inc)
(e) Healthcare (Christiana care health system, Alfred I DuPont hospital for children)
(f) Automotive manufacturing (Fisker automotive)
(g) Farming (Perdue farms, Allen family foods)

The 6 income tax bracket of the state ranges from 2.2% to 5.95%.Imposing tax on gross receipt is the main business rather than assessing sales tax on consumers.

Depending upon the business activity, the business and occupational license tax ranges from 0.096% to 1.92%.

The companies incorporated includes 50% of US publicly traded corporations and 60% of Fortune 500.