Virginia vs. United States Comparative Trends Report: Total Personal Income, 1958-2021 Briefing Report Outline: Page 1 of 11 Introduction  Virginia: 2021 TPI = $565,274,276K 2021 Percent of U.S. = 2.7% U.S.: 2021 TPI = $21,056,621,907K The annual total personal incomes (TPI) estimates compiled by the Bureau of Economic Analysis, (BEA) are among the most comprehensive, consistent, comparable and timely measures of economic activity available statewide and at the national levels. Personal income estimates are also the best available local level indicator of general purchasing power, and are therefore central to tracking and comparing state patterns of economic growth and change. The following graphs highlight trends in the pattern of growth and change in the total personal income of Virginia. The data used are those compiled by the Regional Income and Product Divisions of the Bureau of Economic Analysis, U.S. Department of Commerce. The 2012 constant dollar (real) estimates of total personal income reported in the tables and portrayed graphically below are determined using the Implicit Price Deflator for Personal Consumption. Data Definition: Personal Income is the income that is received by all persons from all sources. It is calculated as the sum of wage and salary disbursements, supplements to wages and salaries, proprietors' income with inventory valuation and capital consumption adjustments, rental income of persons with capital consumption adjustment, personal dividend income, personal interest income, and personal current transfer receipts, less contributions for government social insurance. The personal income of an area is the income that is received by, or on behalf of, all the individuals who live in the area; therefore, the estimates of personal income are presented by the place of residence of the income recipients. Page 2 of 11 Virginia Total Personal Income, 1959-2021 Current vs. Constant Dollars (Millions)  Figure 1. Figure 1 depicts Virginia's annual total personal income over 1959-2021 in current and constant (2012) dollars. Constant dollar measurements remove the effects of inflation. They allow for comparison of changes in the real purchasing power of Virginia over time. When measured in current dollars, Virginia's total personal income increased 7,032.4%, from $7,925M in 1959 to $565,274M in 2021. When measured in constant 2012 dollars to adjust for inflation, it advanced 898.7%, from $48,995M in 1959 to $489,292M in 2021. Page 3 of 11 Real Total Personal Income Indices (1958=100): 1958-2021  Figure 2. Figure 2 portrays Virginia's real total personal income growth in a broader context by offering direct comparisons across time with the United States. The growth indices shown here express each region's real total personal income in 1958 as a base figure of 100, and the real total personal incomes in later years as a percentage of the 1958 base figure. This method allows for more direct comparison of differences in real total personal income growth between regions that may differ vastly in size. Virginia's overall real total personal income growth was 951.5% over 1958-2021 outpaced the United States' increase of 672.3%. Page 4 of 11 Total Personal Income as a Percent of the United States Total: 1958-2021  Figure 3. Another interesting and insightful way of highlighting the total personal income growth of Virginia is to trace its individual percentage contributions to the United States' total total personal income over time, as shown in Figure 3. A rising share means a region's total personal income grew faster, or declined less, than the United States' total personal income, while a declining share shows it grew more slowly. In 1958, Virginia's total personal income comprised 2.0% of the United States' total personal income, while in 2021 it comprised 2.7% thereby yielding a +0.7% share-shift.
Page 5 of 11 Virginia Real Total Personal Income: Annual Percent Change, 1959-2021  Figure 4. Figure 4 shows the short-run pattern of Virginia's real total personal income growth by tracking the year-to-year percent change over 1959-2021. The average annual percent change for the entire 63-year period is also traced on this chart to provide a benchmark for gauging periods of relative high--and relative low--growth against the backdrop of the long-term average. On average, Virginia's real total personal income grew at an annual rate of 3.83% over 1959-2021. The state recorded its highest growth in 1964 (8.75%) and recorded its lowest growth in 2013 (-1.95%). In 2021, Virginia's real total personal income grew by 2.25% Page 6 of 11 Virginia Real Total Personal Income: Annual Percent Change and Decade Averages Over 1959-2021  Figure 5. Over the past six decades some states have experienced extreme swings in growth, and often such swings have tended to coincide with the decades themselves. Figure 5 again shows the annual percent change in Virginia's real total personal income since 1959, but this time they are overlayed with average growth rates for the decade of the 1960s, 1970s, 1980s, 1990s, 2000s, 2010s, and 2020-2021. During the 1960s, Virginia's annual real total personal income growth rate averaged 6.21%. It averaged 4.24% during the 1970s, 4.20% throughout the 1980s, 3.32% in the 1990s, 2.83% in the 2000s, 2.11% during the 2010s, 3.45% thus far this decade (2020-2021). Page 7 of 11 Real Total Personal Income Growth: Average Annual Percent Change by Decade  Figure 6. Figure 6 compares the decade average growth rates for Virginia noted in the previous graph with the corresponding decade averages for the nation. Relative to nationwide real total personal income growth trends, Virginia surpassed the nation throughout the 1960s (6.21% vs. 4.82%), surpassed the nation in the 1970s (4.24% vs. 3.50%), surpassed the nation throughout the 1980s (4.20% vs. 3.17%), outperformed the nation in the 1990s (3.32% vs. 3.30%), led the nation during the 2000s (2.83% vs. 2.04%), fell under the nation over the 2010s (2.11% vs. 2.70%), and fell below the nation over 2020-2021 (3.45% vs. 4.35%).
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