Western Arizona (WACOG) vs. Arizona Comparative Trends Analysis: Total Personal Income Growth and Change, 1969-2022 Introduction Western Arizona (WACOG): 2022 TPI = $20,063,229K 2022 Percent of State = 4.66% Arizona: 2022 TPI = $430,083,534K 2022 Percent of U.S. = 1.97% 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 county patterns of economic growth and change. The following graphs highlight trends in the pattern of growth and change in the total personal income of Western Arizona (WACOG) and Arizona with comparison to the nation. 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 2017 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 received by persons from participation in production, plus transfer receipts from government and business, plus government interest (which is treated like a transfer receipt). It is defined as the sum of wages and salaries, 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. Because the personal income of an area represents the income that is received by, or on behalf of, all the persons who live in that area, and because the estimates of some components of personal income (wages and salaries, supplements to wages and salaries, and contributions for government social insurance) are made on a place-of-work basis, state personal income includes an adjustment for residence. The residence adjustment represents the net flow of compensation (less contributions for government social insurance) of interstate commuters. Western Arizona (WACOG) Total Personal Income, 1984-2022 Current vs. Constant Dollars (Millions) Figure 1. Figure 1 depicts Western Arizona (WACOG)'s annual total personal income over 1984-2022 in current and constant (2017) dollars. Constant dollar measurements remove the effects of inflation. They allow for comparison of changes in the real purchasing power of Western Arizona (WACOG) over time. When measured in current dollars, Western Arizona (WACOG)'s total personal income increased 1,016.74%, from $1,797M in 1984 to $20,063M in 2022. When measured in constant 2017 dollars to adjust for inflation, it advanced 366.15%, from $3,709M in 1984 to $17,289M in 2022. Real Total Personal Income, 1983-2022 (Millions) Figure 2. Figure 2 traces Western Arizona (WACOG)'s and Arizona's annual real total personal income for the period 1983-2022 to illustrate real total personal income patterns over time. During this 40-year period, Western Arizona (WACOG)'s real total personal income rose from $3,366M in 1983 to $17,289M in 2022, for a net gain of $13,924M, or 413.71%. In comparison, Arizona's real total personal income increased from $75,959M in 1983 to $370,624M in 2022, for a net advance of $294,665M, or 387.92%. Real Total Personal Income Indices (1983=100): 1983-2022 Figure 3. Figure 3 portrays Western Arizona (WACOG)'s real total personal income growth in a broader context by offering direct comparisons across time with Arizona, the United States. The growth indices shown here express each region's real total personal income in 1983 as a base figure of 100, and the real total personal incomes in later years as a percentage of the 1983 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. Western Arizona (WACOG)'s overall real total personal income growth was 413.71% over 1983-2022 outpaced Arizona's increase of 387.92%, and topped the United States' increase of 195.58%. Total Personal Income as a Percent of the Arizona Total: 1983-2022 Figure 4. Another interesting and insightful way of highlighting the total personal income growth of Western Arizona (WACOG) is to compare its individual percentage contributions to Arizona's statewide total personal income over time, as shown in Figure 4. A rising share means a region's total personal income grew faster, or declined less, than Arizona's total personal income, while a declining share shows it grew more slowly. In 1983, Western Arizona (WACOG)'s total personal income totaled 4.43% of Arizona's total personal income, while in 2022 it comprised 4.66% thereby yielding a +0.23% share-shift.
Western Arizona (WACOG) Real Total Personal Income: Annual Percent Change, 1984-2022 Figure 5. Figure 5 highlights the short-run pattern of Western Arizona (WACOG)'s real total personal income growth by tracking the year-to-year percent change over 1984-2022. The average annual percent change for the entire 39-year period is also illustrated 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, Western Arizona (WACOG)'s real total personal income grew at an annual rate of 4.34% over 1984-2022. Western Arizona (WACOG) posted its highest growth in 2020 (13.72%) and recorded its lowest growth in 2022 (-2.18%). In 2022, Western Arizona (WACOG)'s real total personal income declined by -2.18% Western Arizona (WACOG) Real Total Personal Income: Annual Percent Change and Decade Averages Over 1984-2022 Figure 6. Over the past five decades some council of governments regions have experienced extreme swings in growth, and often such swings have tended to coincide with the decades themselves. Figure 6 again traces the annual percent change in Western Arizona (WACOG)'s real total personal income since 1984, but this time they are displayed with average growth rates for the decade of the 1990s, 2000s, 2010s, and 2020-2022. During the 1990s, Western Arizona (WACOG)'s annual real total personal income growth rate averaged 4.72%. It averaged 4.30% during the 2000s, 2.20% throughout the 2010s, 4.74% thus far this decade (2020-2022). Real Total Personal Income Growth: Average Annual Percent Change by Decade Figure 7. Figure 7 compares the decade average growth rates for Western Arizona (WACOG) noted in the previous graph with the corresponding decade averages for Arizona and the nation. As the chart reveals, Western Arizona (WACOG)'s average annual real total personal income growth posted below Arizona's average in the 1990s (4.72% vs. 5.06%), outpaced Arizona's average in the 2000s (4.30% vs. 3.31%), amounted to less than Arizona's average during the 2010s (2.20% vs. 3.17%), and led Arizona's average over the 3 year period of the current decade, 2020-2022 (4.74% vs. 4.50%). Finally, relative to nationwide real total personal income growth trends, Western Arizona (WACOG) recorded above the nation in the 1990s (4.72% vs. 3.27%), outperformed the nation during the 2000s (4.30% vs. 2.06%), fell under the nation during the 2010s (2.20% vs. 2.72%), and recorded above the nation over 2020-2022 (4.74% vs. 2.10%).
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