The 50 US States’ GDP Compared to Countries
At PGC, we regularly tell anyone who will listen that when expanding your business across multiple states in the US, you must treat each state as its own country.
This is mostly due to the different employment laws and tax rates unique to each state. However, it is also because each state generates enough GDP to rival that of many countries around the globe!
Using data from the Bureau of Economic Analysis we are going to dive into each US states’ GDP compared to countries, highlighting the sheer size of the US and the opportunity that exists for any business looking to expand there.
The Top 10 US States GDP Compared to Countries
1. California
When it comes to looking at US states GDP compared to countries, it makes sense to look at the biggest…and they don’t come much bigger than California.
The Golden State has a large enough economic output to rival some of the biggest economies in the world. As a matter of fact, if California were its own independent country it would be the 5th largest economy in the world. California’s $3.8 trillion economy is most comparable to that of India which sits at $3.57 trillion.
Over the last three years, California has consistently ranked #1 in our list of top states to do business.
2. Texas
Texas, known for its vast landscapes and economic prowess, boasts a GDP of $2.56 trillion. This places the Lone Star State's economy on par with Italy, which has a GDP of $2.25 trillion.
Texas has witnessed strong growth over the last few years with a number of high-profile companies choosing to relocate to the state. This growth has resulted in Texas leading the way in terms of having the most HQs of Fortune 500 companies in the US.
3. New York
New York State's GDP of $2.15 trillion is comparable to neighbouring Canada’s economy, which is valued at $2.14 trillion.
The Empire State, with New York City at its financial core, stands as a global economic powerhouse, akin to Canada’s resource-rich and diversified economy.
As we help international companies enter the US market, New York is still one of the top states of choice when it comes to US business expansion, due to its proximity to Europe.
4. Florida
Florida’s economy, with a GDP of $1.58 trillion, is comparable to that of Spain’s, which is also around $1.58 trillion. Florida’s tourism, agriculture, and international trade sectors reflect Spain’s diverse economy, known for its tourism and strong industrial base.
Florida’s strategic location enables access to the eastern seaboard and provides a gateway to Latin America.
We have witnessed recent growth in tech hotbeds such as Miami and Tampa, particularly among recruitment agencies looking to places contractors in the Sunshine State.
5. Illinois
Illinois, with a GDP of $1.08 trillion, matches Turkey's economy, which is valued at $1.1 trillion.
Illinois is the fifth state to top $1 trillion in annualized GDP, mainly attributed to the economic powerhouse of Chicago.
6. Pennsylvania
Pennsylvania’s GDP of $965 billion is comparable to Saudi Arabia’s economy, valued at $1.06 trillion. Both regions have strong energy sectors, with Pennsylvania’s natural gas production paralleling Saudi Arabia’s oil dominance.
7. Ohio
Ohio, with a GDP of $873 billion, is similar to Switzerland’s economy, which is around $885 billion. Ohio’s industrial and financial services sectors are akin to Switzerland’s strong banking and industrial bases.
8. Georgia
Georgia’s GDP of $805 billion is on par with Poland’s economy, which is $808 billion. Both economies have robust agricultural, manufacturing, and service sectors.
We have previously touched on why Georgia is an attractive state to do business in
9. Washington
Washington State, with a GDP of $802 billion, matches the combined economies of Denmark and Egypt, which total $798 billion.
Starbucks, Amazon, and Microsoft are some of the world-renowned brands built in Washington state. No income or corporate income tax means as profits increase, states taxes remain the same, giving companies room to invest in their growth.
Tucked in the most northwestern corner of the US, Washington’s location connects exporters to Canada and the Pacific Ocean. The state is a thriving export hub that helps businesses compete and connect internationally.
10. New Jersey
The GDP of several US states are so impressive that we have to combine different countries to make a fair comparison!
In the case of New Jersey, with a GDP of $799 billion, it is comparable to the combined economies of Iran and Hong Kong, which total approximately $779 billion.
Despite the high tax rates and being in New York’s shadow (literally – yYou can easily view New Jersey’s skyline from Manhattan), New Jersey has everything a business needs to succeed in the US. The easy commute to New York is a main selling point of course, but the short ferry ride to Manhattan isn’t the only benefit of doing business in New Jersey.
#11-#30 US States GDP Compared to Countries
We’ve covered the top 10 US states with the highest GDP and as we can see they are extremely competitive with some significant global markets.
But we’re not done there. There are 40 more states whose GDP we can compare to countries; including strong business states like North Carolina and Massachusetts, in addition to up and coming states like Colorado.
11. North Carolina
North Carolina’s GDP of $767 billion is comparable to Taiwan’s economy.
North Carolina is one of the states we have witnessed huge growth in over the last number of years. We explored the reasons behind this when we spoke with a representative from The City of Charlotte.
12. Massachusetts
Massachusetts, with a GDP of $734 billion, is comparable to the combined economies of Nigeria and Colombia, which total $737 billion.
If the Bay State is of interest to you, you’ll be keen to explore 5 reasons why doing business in Massachusetts is a good idea
13. Virginia
Virginia’s GDP of $707 billion is comparable to Argentina’s economy, which is $645 billion.
14. Michigan
Michigan’s GDP of $659 billion is akin to Belgium’s economy, which is valued at $630 billion. Michigan’s automotive and manufacturing industries are similar to Belgium’s industrial economy.
15. Tennessee
Tennessee’s GDP of $523 billion is comparable to Ireland’s economy, valued at $545 billion. Tennessee’s prominence in tech and healthcare, automotive mirrors Ireland’s tech and pharmaceutical sectors.
The Volunteer State’s lack of personal income tax has made it a popular location for companies such as to Oracle and Amazon to set up headquarters in.
16. Colorado
Colorado’s GDP of $520 billion matches Austria’s economy, which is valued at $519 billion. The state capital, Denver, is one the country’s fast-growing tech hubs.
We previously explored why companies are choosing to relocate to Denver.
17. Maryland
Maryland, with a GDP of $512 billion, is similar to Thailand’s economy, which is $514 billion.
18. Arizona
Arizona’s GDP of $508 billion is comparable to the UAE’s economy, which is $504 billion.
19. Indiana
Indiana’s GDP of $497 billion matches Norway’s economy, valued at $485 billion.
20. Minnesota
Minnesota’s GDP of $472 billion is comparable to Bangladesh’s economy, valued at $446 billion.
21. Missouri
Missouri’s GDP of $422 billion matches the Philippines’ economy, which is $436 billion.
22. Wisconsin
Wisconsin’s GDP of $414 billion is similar to Malaysia’s economy, which is $415 billion.
23. Connecticut
Connecticut, with a GDP of $340 billion, is comparable to Romania’s economy, which is $345 billion.
24. South Carolina
South Carolina’s GDP of $322 billion is comparable to Pakistan’s economy, which is $338 billion.
25. Oregon
Oregon’s GDP of $316 billion is similar to Chile’s economy, valued at $335 billion.
26. Louisiana
Louisiana’s GDP of $310 billion is similar to the Czech Republic’s economy, which is $332 billion.
27. Alabama
Alabama’s GDP of $300 billion matches Finland’s economy, valued at $300 billion.
28. Kentucky
Kentucky’s GDP of $278 billion is comparable to Peru’s economy, which is $267 billion.
29. Utah
Utah’s GDP of $273 billion is similar to Kazakhstan’s economy, valued at $260 billion.
30. Oklahoma
Oklahoma’s GDP of $254 billion matches Iraq’s economy, which is $254 billion.
#31-#50 US States GDP Compared to Countries
Nope we’re not done yet! We’ve covered off the top 30 states in the US ranked by GDP. That’s only 60% of the entire US. Let’s count down the last 20. Although these states do not have as high GDP in comparison to the previous entries in this list, these remaining states are still equal to countries like New Zealand, Greece, and Slovenia.
31. Iowa
Iowa’s GDP of $249 billion is comparable to New Zealand’s economy, which is $249 billion. Iowa’s strong agriculture industry reflects New Zealand’s own agricultural sector.
32. Nevada
Nevada’s GDP of $239 billion is similar to Greece’s economy, which is $238 billion. Nevada’s strong tourism industry mirrors Greece’s tourism sector.
33. Kansas
Kansas, with a GDP of $226 billion, is comparable to Qatar’s economy, which is $234 billion.
34. Nebraska
Nebraska’s GDP of $178 billion matches Ukraine’s economy, which is $177 billion. Nebraska’s strength in agriculture and manufacturing industries are similar to Ukraine’s agricultural and industrial sectors.
35. Arkansas
Arkansas’ GDP of $176 billion is similar to Kuwait’s economy, which is $161 billion.
36. Mississippi
Mississippi’s GDP of $146 billion is comparable to Morocco’s economy, which is $143 billion.
37. New Mexico
New Mexico’s GDP of $130 billion is similar to Slovakia’s economy, which is $132 billion.
38. Idaho
Idaho’s GDP of $119 billion is comparable to Puerto Rico’s economy, which is $115 billion.
39. New Hampshire
New Hampshire’s GDP of $111 billion is similar to Oman’s economy, which is $109 billion.
40. Hawaii
Hawaii’s GDP of $108 billion matches Kenya’s economy, which is $108 billion.
41. West Virginia
West Virginia’s GDP of $100 billion is comparable to Venezuela’s economy, which is $97 billion.
42. Delaware
Delaware’s GDP of $94 billion is similar to Angola’s economy, which is $94 billion.
Even though it is one of the lowest US states for GDP, Delaware is one of the most popular states for businesses to incorporate in.
43. Maine
Maine’s GDP of $91 billion matches Uzbekistan’s economy, which is $90 billion.
44. Rhode Island
Rhode Island’s GDP of $77 billion is similar to Uruguay’s economy, which is $77 billion.
45. North Dakota
North Dakota’s GDP of $74 billion is comparable to Serbia’s economy, which is $75 billion.
46. South Dakota
South Dakota’s GDP of $72 billion is comparable to Belarus’s economy, which is $71 billion.
47. Montana
Montana’s GDP of $71 billion is similar to Slovenia’s economy, which is $68 billion.
48. Alaska
Alaska’s GDP of $67 billion is comparable to Myanmar’s economy, which is $64 billion.
49. Wyoming
Wyoming’s GDP of $50 billion matches Cameroon’s economy, which is $48 billion.
50. Vermont
Vermont’s GDP of $43 billion is similar to Latvia’s economy, which is $43 billion.
Want to Explore Which US State is Best for Your Business?
The comparison above shows how the individual US states’ GDP is comparable to entire countries, highlighting the economic diversity and strength within the United States.
This may help you understand one reason why we suggest why you must treat each state as its own country when expanding your business across multiple states in the US.
If you want to expand your business into or within the US, we can help you choose the best states for employing within your sector, and ensure you remain compliant when hiring US employees.
Book a free US opportunity session to find out how you can easily start doing business in the US.
Disclaimer: The information provided here does not, and is not intended to, constitute legal or accountancy advice. Instead, the information and content available are for general informational purposes only.