Florida Experiences Fastest Growth Nationally in Real GDP Among Other Large Economy States
By: Dave Sobush, CEcD, Director of Research, Florida Chamber Foundation
Florida continues to make progress not only toward becoming a top 10 global economy but also the largest economy in the nation. As part of the efforts to track the progress on achieving our Florida 2030 Blueprint mission, the Florida Chamber Foundation’s research team has reviewed new information from the Bureau of Economic Analysis and is pleased to provide this deeper dive into Florida’s economic momentum.
Among the nation’s 10 largest economies, Florida experienced the fastest real (i.e., adjusted for inflation) growth in GDP for the 4 years ending in the first quarter of 2023. At 14.2%, Florida continues to distance itself from #5 Illinois, growing more than 4 times as fast as the Land of Lincoln, and gaining on #3 New York, growing more than twice as fast as the Empire State. This is the type of performance that will need to sustain to make progress on our Florida 2030 Blueprint goals, especially in the context that the states Florida chases have economies 44% (NY), 77% (TX), and 167% (CA) larger.
Shifting our focus from external to internal, we’re often asked what industries drove Florida’s economic growth over the past four years and what is the current composition of Florida’s economy, based on contributions to GDP?
Of the 20 industry sectors categorized in the North American Industrial Classification System (NAICS), seven surpassed Florida’s 14.2% overall growth. The top 10 industry sectors by GDP growth rate lean towards white collar in nature, but overall are reflective of a broad workforce requiring college degrees, industry certifications, and general employability skills.
As industry sectors grow at varying rates, Florida’s economic makeup constantly shifts. These movements are influenced by a variety of factors both external (consumer demand and sentiment, foreign exchange rates) and internal (workforce availability, economic development strategy). With the books closed on the first quarter of 2023, five of the 20 industry sectors constitute more than half of Florida’s GDP: Real Estate, Professional/Scientific/Technical Services, Government, Healthcare/Social Assistance, and Retail Trade. As with the fastest-growing industry sectors, the dominant industry sectors represent a variety of skills and customer bases.
If you have any questions about this update, please don’t hesitate to reach out to me directly at dsobush@flchamber.com, and to stay up to date on the metrics impacting Florida’s economic trajectory, please be sure to visit TheFloridaScorecard.org and follow @FloridaBTN on Twitter.