Florida economy ranks in top 10 best states in the US. Here’s why

On Jun 8, 2024

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Did you know that Florida, California, Texas and New York have economies so big that if they were countries, they would rank in the top 20 in the world?

Personal finance company WalletHub just released a study that ranks all 50 states by determining the states with the best and worst economies, based on metrics like changes in each state’s GDP, unemployment rates and growth in number of businesses. And Florida placed in the top 10 on the “best” list.

“A strong state economy doesn’t guarantee success for the state’s residents, but it certainly makes financial success more attainable,” WalletHub Analyst Cassandra Happe said in the study.

“Factors like a low unemployment rate and high average income help residents purchase property, pay down debt and save for the future.”

Here’s which state placed first on WalletHub’s list of the states with the best economies, where Florida ranked and why.

Which U.S. state has the best economy?

According to WalletHub’s study, Washington has the best state economy in the U.S. for a variety of reasons.

Washington has the second-highest share of jobs in high-tech industries and the second-highest share of STEM professionals nationwide.

“In addition, Washington has the fourth-highest percentage of firms that are listed on the Technology Fast 500 list, and the third-highest number of invention patents per capita. This business growth and new technology will expand the economy even more in the future,” the study says.

“To top things off, new immigrants to the Evergreen State are the fifth-most educated in the country, and the state has the sixth-highest median household income after adjusting for the cost of living.”

What are the top 10 economies in the United States?

According to WalletHub’s rankings, Florida has the seventh best economy in the U.S.

Florida ranked high in two individual categories as well, taking first place for the most startup activity and second place in nonfarm payrolls.

Nonfarm payrolls is a monthly statistic that measures the amount of jobs in the state, excluding farm workers, private household employees, non-profits, local government, unincorporated business owners and active military service members.

Here are the top 10 best state economies in the U.S., according to WalletHub’s study:

Washington
Utah
Massachusetts
Texas
California
Colorado
Florida
North Carolina
District of Columbia
Arizona

What is the best indicator of a state’s economy?

GDP (gross domestic product) is the most common indicator that economists look at to determine the health of a country or region’s economy.

GDP is, in short, the total market value of the final goods and services produced within a country, state or region within a year. The Bureau of Economic Analysis breaks down the four-part formula used to find GDP in its “What is GDP?” guide.

But GDP isn’t the only economic indicator that matters.

“The conventional indicators are state-level GDP, unemployment, inflation, and government budget. They measure total income, the status of the labor market, the…