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
Economic Activity Rank: 51
Economic Health Rank: 30
Innovation Potential Rank: 51
50. Kentucky
Economic Activity Rank: 43
Economic Health Rank: 38
Innovation Potential Rank: 50
49. Louisiana
Economic Activity Rank: 37
Economic Health Rank: 48
Innovation Potential Rank: 47
48. Maine
Economic Activity Rank: 50
Economic Health Rank: 25
Innovation Potential Rank: 41
47. Rhode Island
Economic Activity Rank: 49
Economic Health Rank: 35
Innovation Potential Rank: 31
46. Wyoming
Economic Activity Rank: 46
Economic Health Rank: 20
Innovation Potential Rank: 44
45. Mississippi
Economic Activity Rank: 34
Economic Health Rank: 32
Innovation Potential Rank: 45
44. Hawaii
Economic Activity Rank: 30
Economic Health Rank: 14
Innovation Potential Rank: 49
43. Oklahoma
Economic Activity Rank: 39
Economic Health Rank: 23
Innovation Potential Rank: 40
42. Missouri
Economic Activity Rank: 44
Economic Health Rank: 33
Innovation Potential Rank: 32
41. South Dakota
Economic Activity Rank: 47
Economic Health Rank: 1
Innovation Potential Rank: 48
40. North Dakota
Economic Activity Rank: 48
Economic Health Rank: 5
Innovation Potential Rank: 38
39. Iowa
Economic Activity Rank: 45
Economic Health Rank: 29
Innovation Potential Rank: 28
38. Ohio
Economic Activity Rank: 32
Economic Health Rank: 44
Innovation Potential Rank: 33
37. Illinois
Economic Activity Rank: 27
Economic Health Rank: 50
Innovation Potential Rank: 26
36. Arkansas
Economic Activity Rank: 24
Economic Health Rank: 15
Innovation Potential Rank: 46
35. Nevada
Economic Activity Rank: 21
Economic Health Rank: 34
Innovation Potential Rank: 43
34. Nebraska
Economic Activity Rank: 40
Economic Health Rank: 7
Innovation Potential Rank: 37
33. Washington, DC
Economic Activity Rank: 25
Economic Health Rank: 51
Innovation Potential Rank: 14
32. Alaska
Economic Activity Rank: 14
Economic Health Rank: 42
Innovation Potential Rank: 42
31. Wisconsin
Economic Activity Rank: 41
Economic Health Rank: 26
Innovation Potential Rank: 18
30. Pennsylvania
Economic Activity Rank: 29
Economic Health Rank: 41
Innovation Potential Rank: 16
29. Vermont
Economic Activity Rank: 38
Economic Health Rank: 28
Innovation Potential Rank: 21
28. Alabama
Economic Activity Rank: 26
Economic Health Rank: 22
Innovation Potential Rank: 34
27. Michigan
Economic Activity Rank: 42
Economic Health Rank: 46
Innovation Potential Rank: 11
26. New Mexico
Economic Activity Rank: 36
Economic Health Rank: 36
Innovation Potential Rank: 13
25. New Jersey
Economic Activity Rank: 23
Economic Health Rank: 47
Innovation Potential Rank: 15
24. Oregon
Economic Activity Rank: 33
Economic Health Rank: 45
Innovation Potential Rank: 8
23. Kansas
Economic Activity Rank: 20
Economic Health Rank: 13
Innovation Potential Rank: 30
22. Indiana
Economic Activity Rank: 13
Economic Health Rank: 39
Innovation Potential Rank: 27
21. Minnesota
Economic Activity Rank: 28
Economic Health Rank: 12
Innovation Potential Rank: 20
20. Maryland
Economic Activity Rank: 35
Economic Health Rank: 43
Innovation Potential Rank: 4
19. Montana
Economic Activity Rank: 17
Economic Health Rank: 6
Innovation Potential Rank: 35
18. South Carolina
Economic Activity Rank: 11
Economic Health Rank: 17
Innovation Potential Rank: 39
17. Tennessee
Economic Activity Rank: 12
Economic Health Rank: 3
Innovation Potential Rank: 36
16. Connecticut
Economic Activity Rank: 22
Economic Health Rank: 40
Innovation Potential Rank: 7
15. Arizona
Economic Activity Rank: 16
Economic Health Rank: 16
Innovation Potential Rank: 23
14. Virginia
Economic Activity Rank: 18
Economic Health Rank: 9
Innovation Potential Rank: 19
13. New Hampshire
Economic Activity Rank: 31
Economic Health Rank: 10
Innovation Potential Rank: 6
12. Georgia
Economic Activity Rank: 10
Economic Health Rank: 21
Innovation Potential Rank: 25
11. Idaho
Economic Activity Rank: 19
Economic Health Rank: 2
Innovation Potential Rank: 17
10. Florida
Economic Activity Rank: 6
Economic Health Rank: 19
Innovation Potential Rank: 29
9. Colorado
Economic Activity Rank: 15
Economic Health Rank: 24
Innovation Potential Rank: 5
8. Texas
Economic Activity Rank: 7
Economic Health Rank: 11
Innovation Potential Rank: 24
7. New York
Economic Activity Rank: 4
Economic Health Rank: 31
Innovation Potential Rank: 22
6. North Carolina
Economic Activity Rank: 9
Economic Health Rank: 8
Innovation Potential Rank: 9
5. Delaware
Economic Activity Rank: 1
Economic Health Rank: 27
Innovation Potential Rank: 10
4. California
Economic Activity Rank: 2
Economic Health Rank: 49
Innovation Potential Rank: 3
3. Utah
Economic Activity Rank: 3
Economic Health Rank: 4
Innovation Potential Rank: 12
2. Washington
Economic Activity Rank: 8
Economic Health Rank: 18
Innovation Potential Rank: 2
1. Massachusetts
Economic Activity Rank: 5
Economic Health Rank: 37
Innovation Potential Rank: 1
