District of Columbia

Economy

During the 1990s, the number of jobs in the service sector grew by about 50%. Other sectors, however, declined in that decade. The small manufacturing sector went from 2.3% of the gross state product in 1997 to 1.2% in 2001. Not surprisingly, the public sector has a greater weight in DC's economy than is found in any of the 50 states, where the average contribution from the public sector in 2001 was 12% compared to 35.2% in DC. Also distinct from most of the states, the District's economy was not adversely affected by the national recession of 2001, as the strong annual growth rates at the end of the 20th century—6.2% in 1999 and 8.2% in 2000—continued into the 21st, averaging 7.5% for 2001. In 2002, the military build-up for the war in Iraq was one of the major growth points in an otherwise slowed national economy reeling from a precipitous drops in both domestic and foreign private investment. The recession and slowed economy also meant more work for government agencies.