2011 growth rate: -0.8%
Economy size: $173 billion*
Alabama's health sector edged up as the state benefited from Birmingham's medical research facilities and growing hospitals. But not even the industry's gains could stop the bleeding from real estate and construction.
Housing prices remained low in Alabama and loans for commercial real estate were hard to come by. The sector is likely to weigh on the state's economy until it unloads inventory left over from the housing bubble.
NEXT: New Jersey
