Sacramento's economy shrunk again during 2011, performing worse than all but seven of the nation's 100 largest metropolitan areas, according to a report released this month by the U.S. Conference of Mayors.
The area's real gross domestic product, the total, inflation-adjusted value of all goods and services produced locally, fell by just 0.3 percent from 2010 to 2011. But the vast majority of metropolitan areas saw their economies grow. Average real GDP growth for metro areas nationwide was a modest 1.7 percent.
After booming during the first half of the last decade, Sacramento's inflation-adjusted economic output has fallen for five consecutive years. The region's economy is heavily dependent on the state and local government sectors, which continue to wither in the face of budget cuts.
Two other California cities joined Sacramento near the bottom for economic performance last year: Stockton, which saw its economy shrink by 1 percent, and Modesto, which saw its economy shrink by 1.7 percent. The San Jose metro area led the nation in economic growth, expanding its economy by 7.5 percent.
The report by IHS Global Insight, a reputed economics consulting firm, predicts that Sacramento's economy will grow 1.9 percent during 2012.
This chart, which combines growth rates reported by IHS Global Insight and by the U.S. Bureau of Economic Analysis, shows year-to-year growth in Sacramento's real gross domestic over the last decade.