Federal spending for procurement, salaries, grants,
and benefits for individuals in the metropolitan Washington
area increased $1.9 billion, or 3.1 percent, to
$64.6 billion in 1998. This was the second lowest
rate of increase since 1983 when these data were first
reported, and was lower than the 3.6 percent increase
in federal spending nationally. Federal spending is
vitally important to the area. In 1998, it accounted
for about one-third of the area’s gross regional product.
However, since 1983, the direct contribution of
local spending by the federal government to the area’s
economy has slowly declined from almost 37 percent.
