Twin Cities economy passes Detroit's

The Twin Cities now has a larger economy than Detroit.

Solid growth in 2013 moved Minneapolis-St. Paul up the rankings of metropolitan economies, passing the Motor City to rank 13th in the nation, according to data released Tuesday by the U.S. Department of Commerce.

In the Midwest, only Chicago now has a larger economy than the Twin Cities — by a wide margin. Chicago's 2013 GDP was $550.8 billion, compared with Minneapolis-St. Paul's $213.5 billion.

Despite Detroit's heavy dependence on auto manufacturing and its high-profile municipal bankruptcy, its economy has been growing respectably since the recession — only slightly slower than the Twin Cities'.

Still, Detroit is not the city the Twin Cities should be comparing itself with, said Louis Johnston, an economist at the College of St. Benedict and St. John's University.

"If you compare us with Detroit, you're putting the bar pretty low," Johnston said.

In fact, Johnston doesn't think the Twin Cities should compare itself with any city in the Midwest.

Per capita GDP in the Twin Cities is $61,711, just ahead of Denver and San Diego, but well below Seattle and Portland.

The trend in growth since 2009, when GDP contracted across the country, has been similar. In per capita GDP growth over that period, Minneapolis-St. Paul weighs in ahead of Denver and San Diego and behind Portland and Seattle.

Johnston sees these cities as growing sustainably and connected to the global economy in meaningful ways. That Minneapolis-St. Paul is growing at a similar rate is a good sign.

"It's a much better yardstick to compare ourselves with cities that have a global connection," he said. "Minneapolis-St. Paul as an area is connected to the global economy the same way those are connected to the global economy, and that's a good thing not just for now but for the future."

Economic growth in the Twin Cities — which accounts for three-quarters of the Minnesota economy — was 2.5 percent in 2013. That compared with a 1.7 percent national average.

"It looks pretty balanced," Johnston said. "That's the other thing that stands out."

Adam Belz • 612-673-4405 • Twitter: @adambelz