Perry and Hale Counties have been named Alabama’s fastest growing economies in Gross Domestic Product for 2023, according to recently released data from the federal Bureau of Economic Analysis. Despite the two counties’ relatively small populations and economic bases, both experienced significant economic expansion, driven by a mix of agricultural strength, manufacturing, and external earnings inflows. The two neighboring Black Belt counties were the only counties in the state posting gains to GDP of more than 10% for 2023, according to the data.
Perry County led the state with a 13.5% increase in real GDP, driven primarily by agriculture, forestry, fishing, and hunting, which contributed 10.87 percentage points to the overall increase. This sector generated $17.6 million in earnings, including $14.8 million from farm proprietors’ income. Real estate and rental leasing added 1.79 percentage points, while educational services and healthcare contributed 0.82 percentage points. Retail trade added 0.56 percentage points, and professional and business services contributed 0.11 percentage points. Smaller contributions came from durable goods manufacturing (0.15 percentage points) and arts, entertainment, and recreation (0.01 percentage points).
Hale County’s economic growth was bolstered by a strong industrial base. Manufacturing contributed $38.5 million in earnings, with durable goods manufacturing alone accounting for $36.9 million. Agriculture and forestry generated $17.8 million, while construction added $12.4 million. Retail trade, another significant contributor, brought in $9.9 million in earnings. Other key sectors included health care and social assistance ($11.7 million) and government enterprises ($51.9 million). Despite their differences in economic composition, both counties demonstrated the ability to leverage their key industries for sustained growth.
Perry County’s population of 7,738 generated a total personal income of $334.9 million, with a per capita personal income of $43,279. Hale County, with a population of 14,888, recorded a total personal income of $687.5 million and a per capita income of $46,181. These figures highlight the ongoing economic disparities between the counties and the state as a whole, where both remain among Alabama’s smaller and less affluent regions.
Perry County’s population has been shrinking. Census data released last year placed it among Alabama’s fastest-shrinking counties in 2023. The 2021 loss of Judson College not only impacted the county’s education sector, it also contributed to population loss and a reduced local economic base. However, the county’s recent GDP growth suggests signs of recovery, with healthcare contributing $29.2 million in earnings and agriculture remaining a steadfast economic pillar.
In contrast, Hale County has experienced brisk population growth in recent years, ranking among Alabama’s fastest-growing counties in 2023. This growth is attributed to its proximity to larger urban centers like Tuscaloosa, which provide employment opportunities and economic spillovers. The county’s diversified industrial base has supported its economic and demographic expansion, allowing it to leverage sectors like manufacturing, retail trade, and government enterprises to attract and retain residents.
Net earnings inflows underscore the role of both counties as commuter hubs. Perry County recorded $27.3 million in net inflows, reflecting its position as a residential hub for workers employed outside the county. Inflows of earnings totaled $56 million, while outflows stood at $28.7 million. This net positive adjustment highlights the economic ties between Perry County and neighboring areas.
Hale County demonstrated an even more substantial economic integration with larger urban centers. Its net earnings inflows amounted to $188.2 million, supported by $229.3 million in inflows and $41.1 million in outflows.
The most important sectors for both counties included:
Agriculture and Forestry: Perry County’s agriculture sector brought in $17.4 million, with farm proprietors’ income accounting for $14.8 million. Forestry and logging contributed $6.1 million. In Hale County, agriculture and forestry earnings totaled $17.8 million, with forestry and logging generating $9.5 million.
Manufacturing: Hale County’s manufacturing sector remains a powerful force, with $38.5 million in total earnings and $36.9 million from durable goods manufacturing. Perry County’s manufacturing impact was smaller but notable, contributing 0.15 percentage points to its GDP growth.
Construction: Construction activity in Hale County generated $12.4 million, underscoring its role in the local economy. In Perry County, construction had a smaller impact on GDP growth.
Healthcare: Healthcare emerged as a vital contributor, adding $29.2 million to Perry County’s economy. Hale County’s healthcare sector, while smaller, still played a significant role, generating $11.7 million.
Government Enterprises: Government-related earnings were substantial in both counties, contributing $40.5 million in Perry County and $51.9 million in Hale County.
Retail Trade: Retail trade earnings reached $9.9 million in Hale County and $11.2 million in Perry County, reflecting the sector’s importance as a source of employment and consumer activity.
