COLUMBIA, S.C. (AP) - A new federal report shows South Carolina’s economy grew last year, despite the recession.   

The State of Columbia reported Wednesday that the report by the U.S. Bureau of Economic Analysis said that South Carolina’s gross domestic product increased 0.6 percent in 2008.
   
The gross domestic product is the total value of all goods and services produced in the state. South Carolina’s totaled $127 billion last year.
   
The national increase was 0.7 percent.   

Wachovia senior economist Mark Vitner says the growth is a bit of a surprise. But Vitner says he expects the Carolinas to face economic challenges for the next year or so.
   
The report shows South Carolina lost production in construction, manufacturing and the finance sector last year. Other areas of the economy allowed the state to post the slight increase.