In this article, we will discuss the 15 states with the best economy right now. If you want to skip our detailed analysis, you can go directly to the 5 States with the Best Economy Right Now.
According to a report by Goldman Sachs, the economy of the United States is on track to beat expectations as the year 2023 comes to a close. The GDP of the United States is expected to expand by 2.1% in 2024, compared to the expected 1%. The report adds that the country is on track to defy any recession expectations, with a probability of only 15% for the next 12 months. Goldman Sachs’ research highlights that the primary concern to economists was the Fed pushing interest rates to slow the demand so it could meet supply. However, despite rising concerns, the Fed put the interest rate hike on hold. The Fed will likely keep interest rates steady until a cut during the last quarter of 2024, supported by a continuous 25-basis-point cut per quarter till the Fed funds rate reaches 3.5%-3.75 % in the second quarter of 2026. The report also adds that consumer spending is expected to grow in 2024, as real disposable income is projected to grow by 3%, supported by a 1% increase in the real wage. You can also check out the states with the lowest unemployment rate.
Will the Fed Raise Interest Rates?
Despite rising expectations of a recession at the start of 2023, the US economy has pulled back stronger, especially during the third quarter. On October 26, Reuters reported that the United States economy grew by almost 5% in the third quarter. A rebound in residential investment also supported the growth after nine consecutive quarters of contraction. The economy’s performance indicates people’s resilience to continue spending despite interest rate hikes. While some economists argue that growth may slow down in the last quarter of 2023, the United States may bid farewell to the year with a soft landing.
On November 28, Reuters reported that the Fed shows no signs of altering interest rates as the fiscal year ends. While the Fed is consistent with its effort in trying to achieve a soft landing for the economy, there is a possibility of an interest rate increase if an unexpected resurgence of price pressures occurs. Fed Governor Christopher Waller suggested that the Fed is confident that the economy is on track to bring the inflation rate to 2% and added that it is achievable without having to experience a rise in the unemployment rate, currently recorded at 3.9%.
Prominent Names Contributing to the US Economy
Adobe Inc. (NASDAQ:ADBE), Visa Inc. (NYSE:V), and Johnson & Johnson (NYSE:JNJ) are some of the leading companies heavily contributing to the US economy. Let’s discuss some of the recent updates from these companies.
Adobe Inc. (NASDAQ:ADBE) is a computer software company headquartered in California, United States. On October 11, Adobe Inc. (NASDAQ:ADBE) revealed the new, Project Stardust at Adobe MAX, one of the world’s largest creativity conferences. Project Stardust is a new object-aware editing engine backed by generative artificial intelligence. The new engine allows users to select, edit, or delete complex images to make images simpler and easier to use. The tool allows users to treat a flat image as a file with layers, as with editing software. The company also revealed its latest collection of Gen AI and 3D technologies to be introduced across several creative domains such as photo, video, audio, 3D, design, and fashion. The company revealed sneak peeks into several prototype ideas and technologies, soon to be added to the Adobe creative set.
Visa Inc. (NYSE:V) is a leading payment services provider based in California, United States. The company provides electronic funds transfers, branded credit cards, debit cards, and prepaid cards. On November 8, Visa Inc. (NYSE:V) announced the launch of its AI advisory practice. The new platform will provide actionable insights and recommendations to customers to enhance the use of artificial intelligence. The dedicated AI Advisory Practice spreads across a force of 1,000 consultants, data scientists, and product experts in 75 offices and 6 continents. The company also shared that over the past 10 years, it has invested over $3 billion in boosting the use of technologies backed by artificial intelligence for safer and smarter money movements.
Johnson & Johnson (NYSE:JNJ) is a pharmaceutical company based in New Jersey, United States. On November 15, Johnson & Johnson (NYSE:JNJ) announced the approval of ETHIZIATM. ETHIZIATM is an adjunctive hemostat solution aimed at achieving sustained hemostasis when it is difficult to control bleeding. The sealing patch is made with unique synthetic polymer technology and is the only sealing patch that is equally effective on both sides. The patch has received a CE Mark approval, meaning the patch can be used to protect against disruptive bleeding on internal organs, except cardiovascular and neurological organs. The patch is expected to launch in the first quarter of 2024 and will be available in North America, APAC, and LATAM regions.
Let’s now take a look at the 15 states with the best economy right now. You can also check out the richest states in America.
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Our Methodology
We sourced our data from the US Bureau of Economic Analysis to come up with the 15 states with the best economy right now. We acquired the annual Gross Domestic Product (GDP) and the Gross Domestic Product (GDP) per Capita for the year ended 2022. We first sorted the top 30 states based on the highest Gross Domestic Product in 2022 and then picked the top 15 with the highest Gross Domestic Product Per Capita in 2022.
We also acquired state and region-wise Personal Income for the first two quarters of 2023. According to the US Bureau of Economic Analysis, Personal Income is the income received by, or on behalf of, all people from all sources or streams of income. Personal income is measured before the deduction of personal taxes and income taxes. The figures are reported in current US dollars. The list of the 15 states with the best economy is in ascending order of the GDP per Capita in 2022.
15 States with the Best Economy Right Now
15. Texas
GDP Per Capita (2022): $61,985
Gross Domestic Product (2022): $2.40 Trillion
According to our methodology, Texas is one of the top states with the best economy right now. With a GDP per capita of $61,985 in 2022, Texas reported personal income worth $1.99 trillion in the second quarter of 2023, up by 4% from the first quarter.
14. Oregon
GDP Per Capita (2022): $62,767
Gross Domestic Product (2022): $297.31 Billion
Oregon is among the top states with the best economy right now. Oregon reported personal income worth $277.19 billion in the second quarter of 2023, up by 5.5% from the first quarter.
13. Florida
GDP Per Capita (2022): $63,597
Gross Domestic Product (2022): $1.44 Trillion
According to our methodology, Florida ranks as one of the top states with the best economy right now. Florida, home to some of the best beach resorts, reported personal income worth $1.54 trillion in the second quarter of 2023, up by 4.7% from the first quarter.
12. Pennsylvania
GDP Per Capita (2022): $65,167
Gross Domestic Product (2022): $911.81 Billion
Pennsylvania is one of the top states with the best economy right now, with a GDP per capita of $65,167 in 2022. Pennsylvania reported personal income worth $880.41 billion in the second quarter of 2023, up by 4.7% from the first quarter.
11. Minnesota
GDP Per Capita (2022): $68,010
Gross Domestic Product (2022): $448.03 Billion
Minnesota, home to the headwaters of the Mississippi River, is one of the top states with the best economy right now. Minnesota posted personal income worth $410.10 billion in the second quarter of 2023, up by 3.9% from the first quarter.
10. Virginia
GDP Per Capita (2022): $68,211
Gross Domestic Product (2022): $663.11 Billion
According to our methodology, Virginia ranks among the top states with the best economy right now, with personal income worth $628.99 billion in the second quarter of 2023. Personal income grew by 4.5% from the fiscal first quarter of 2023.
9. Illinois
GDP Per Capita (2022): $68,822
Gross Domestic Product (2022): $1.03 Trillion
With personal income worth $888.77 billion in the second quarter of 2023, Illinois ranks among the top states with the best economy right now. Personal income grew by 4.6% from the fiscal first quarter of 2023.
8. Maryland
GDP Per Capita (2022): $70,730
Gross Domestic Product (2022): $480.11 Billion
Maryland, home to Baltimore, one of the major trading ports, is among the top states with the best economy right now. Maryland posted personal income worth $456.13 billion in the fiscal second quarter of 2023, up by 4.9% from the fiscal first quarter of 2023.
7. Colorado
GDP Per Capita (2022): $74,167
Gross Domestic Product (2022): $491.29 Billion
With personal income worth $460.63 billion during the second quarter of 2023, Colorado ranks among the top states with the best economy right now. Personal income grew by 4% from the fiscal first quarter of 2023.
6. Washington
GDP Per Capita (2022): $75,698
Gross Domestic Product (2022): $738.10 Billion
According to our methodology, Washington ranks among the top states with the best economy right now. Washington, the 18th largest state in the United States, posted personal income worth $618.94 billion in the fiscal second quarter of 2023, up by 5.2% from the fiscal first quarter of 2023.
Click to continue reading and see the 5 States with the Best Economy Right Now.
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Disclosure: None. 15 States with the Best Economy Right Now is originally published at Insider Monkey.
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