The New York economy has been a major engine of growth and opportunity for small businesses for decades. However, recent data shows slowing statewide GDP and employment growth along with rising costs. This economic slowdown is making it harder than ever for New York small businesses to access the financing they need.
Signs of a Slowing New York Economy
While still substantial, New York's GDP growth rate has dropped from over 4% in 2018 to 2.5% in 2022 based on data from the U.S. Bureau of Economic Analysis. The state’s unemployment rate has also ticked up over the past year.
At the same time, costs continue rising sharply in New York. Commercial rents are up 4% in Manhattan and operating expenses have soared in areas like utilities and wages. This pinches margins for local small businesses.