California’s economy is the fourth largest in the world, having passed Japan’s last year and trailing only the US, China, and Germany in terms of GDP.
But GDP metrics don’t always tell the full story of what conditions are like for the people and businesses located there.
A recent WalletHub study ranked all US states and Washington, DC, on their economies by evaluating their performance in 28 different economic indicators. These metrics made up three overall categories: economic activity, economic health, and innovation potential.
Economic activity was measured by factors including the state’s change in GDP from 2024 to 2025, its share of fast-growing companies, and exports per capita. Economic health included the state’s unemployment rate, foreclosure rate, and fiscal health. Innovation potential was measured by the share of jobs in high-tech industries, entrepreneurial activity, and other indicators.
WalletHub then calculated each state’s weighted average across the three dimensions, which provided the basis for its overall ranking. The study drew on data from a range of sources, including the US Census Bureau, Bureau of Labor Statistics, and Bureau of Economic Analysis.
While the study doesn’t paint the full picture of the economic conditions for residents, it may indicate the states where workers might have more job opportunities and where businesses have strong growth potential. WalletHub added that its analysis also shows “which states are pulling the most weight in moving the US economy forward.”
“A strong state economy doesn’t guarantee success for the state’s residents, but it certainly makes financial success more attainable,” WalletHub analyst Chip Lupo said in the study.
Here’s the list of every US state and Washington, DC, ranked by their economies, from worst to best.
51. West Virginia
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50. Kentucky
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49. Louisiana
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48. Maine
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47. Rhode Island
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46. Wyoming
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45. Mississippi
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44. Hawaii
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43. Oklahoma
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42. Missouri
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41. South Dakota
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40. North Dakota
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39. Iowa
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38. Ohio
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37. Illinois
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36. Arkansas
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35. Nevada
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34. Nebraska
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33. Washington, DC
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32. Alaska
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31. Wisconsin
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30. Pennsylvania
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29. Vermont
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28. Alabama
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27. Michigan
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26. New Mexico
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25. New Jersey
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24. Oregon
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23. Kansas
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22. Indiana
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21. Minnesota
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20. Maryland
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19. Montana
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18. South Carolina
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17. Tennessee
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16. Connecticut
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15. Arizona
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14. Virginia
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13. New Hampshire
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12. Georgia
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11. Idaho
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10. Florida
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9. Colorado
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8. Texas
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7. New York
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6. North Carolina
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5. Delaware
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4. California
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3. Utah
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2. Washington
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1. Massachusetts
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