FILE - Inflation New Mexico Rebates

Wayne Holly, the owner of Rio Rancho T-Shirts, poses for a portrait at the family-owned shop in Rio Rancho, N.M., Monday, March 21, 2022. Holly said the small business he and his wife have operated for more than 20 years has been dramatically affected by the rising cost of materials. He said he and his wife are heartbroken that they have to pass those costs onto customers. 

(The Center Square) – New Mexico had one of the largest decreases in gross domestic product (GDP) among states in this year's first quarter.

The state's GDP shrank 4.7% from January to March, according to data released Thursday by the Bureau of Economic Analysis (BEA). Only Wyoming, Alaska, North Dakota, and West Virginia had larger GDP decreases.

Declines in the mining and oil/gas industries were a "leading contributor to the decreases" in the states, including New Mexico, the agency said.

Nationally, GDP dropped 1.6%, and 46 states saw decreases, BEA's data showed.

Lee Schalk, vice president of policy at the American Legislative Exchange Council (ALEC), echoed that decreases in energy production was a factor.

“Governor Lujan Grisham and many lawmakers in Santa Fe have doubled down on Biden's war on American energy, and the state's latest annual budget deal represents a 15% spending increase from last year,” Schalk told The Center Square. 

For a state that relies heavily on jobs and revenue from oil and gas, Schalk said this a recipe for disaster.

“Government spending and debt are rising, while private investment is falling,” he said. “Sadly, this perfect storm of bad policy is jeopardizing the long-term economic health of the Land of Enchantment and the livelihoods of its residents.”