Hampton Roads’ Gross Regional Product (GRP) continued to decline in 2011, shrinking for the fourth straight year since its peak prior to the recession in 2007.  GRP shrank by 0.77% in 2011 to $70.1 billion (2005$s). Hampton Roads’ economic performance from 2010 to 2011 was ranked 206^th of the 366 metropolitan statistical areas (MSAs). The region’s five-year annualized growth was -0.05% which ranks 194^th out of the 366 MSAs. The strong expansion of GRP to start the new century somewhat mitigates Hampton Roads’ economy shrinking since 2007. GRP grew at annualized rate of 1.50% over the past ten years, and the regional economy grew by almost $10 billion between 2001 and 2011, despite the recent decline.

The regional economy currently ranks the 40^th largest in the country, compared to 36^th in population and 37^th in employment.   Hampton Roads ranks 93^rd in per capita** GRP at $41,714 per resident. Per capita GRP is $3,730 higher than it was in 2001, but has shrunk since 2007, declining from a peak of $43,145 in 2007.

Compositionally, direct government spending forms a large part of the regional economy. All levels of government spending constitute 28.5% of the regional economy (28^th), while direct military spending is 13.4% of the economy (16^th). Defense spending on shipbuilding and defense contractors also play a large role in the economy, and current HRPDC estimates indicate that military spending and its indirect impacts drive approximately 46% of economic activity in the region.

*All dollar figures are inflation adjusted 2005 dollars.

**  Per capita GRP is a measure of economic performance that controls for population size, enabling one to compare quality of life across regions of different sizes.