Sacramento’s economic output grew by almost $5 billion during 2012 - the fastest rate of growth in seven years, according to new estimates from the U.S. Bureau of Economic Analysis.
The region’s Gross Domestic Product - the value of all goods and services produced in the area -- rose from $92.9 billion in 2011 to $97.6 billion in 2012. Adjusted for inflation, that equals 3.2 percent growth from 2011 to 2012.
The last time the local economy grew by more than 3 percent was in 2005, during the zenith of the housing boom. After 2005, the economy contracted each year until 2011, when it grew slightly.
The local real estate industry posted strong gains from 2011 to 2012. The retail trade and finance sectors also grew quickly.
Even with the large rise last year, the region’s economic output was still 7 percent below its pre-recession peak, after adjusting for inflation.
California’s economy grew at roughly the same pace as Sacramento’s last year, federal data show.
This chart shows year-to-year change in real gross domestic product -- GDP adjusted for inflation -- in the Sacramento region during the last decade.