South Dakota's economy took a tumble in the first part of the year (a 3.1% contraction) largely due to trade disruptions and low commodity prices.
But the impact of federal relief, in the form of the Emergency Commodity Assistance Program (ECAP), helped the state's GDP rebound in the second quarter (a 5.2% surge).
The Dakota Institute is a cohort of regional economists. Devan Schaefer is a research fellow from South Dakota State University.
He explains how a diversified economy that includes finance and banking, retail, and agriculture helps South Dakota weather volatility. But he warns the various economic sectors are not immune to national and international shocks.
He said economists are also monitoring the long-term impact of ECAP.
"We'll continue to see what goes on for the remainder of 2025 and into 2026," Schaefer said. "We'll see if ECAP was a one-time stimulus or if maybe those effects will help guide us through the worst of things."
