In this article, we will be navigating through the US economy, while covering the 25 richest states in America. If you wish to skip our detailed analysis, you can move directly to the 5 Richest States in America.
The US Economy
The United States of America is one of the strongest economies in the world. According to Credit Suisse’s Global Wealth Report 2023, the US is a leading economy with a total wealth of $139.86 trillion, as of 2022. The United States is the second wealthiest country by per capita net worth of $551,347. There were 21,037 and 110,129 top 1% and top 10% of global wealth holders in the US in 2022, respectively.
In 2021, real GDP increased by 5.9% in the US from the depressed levels in 2020. The growth rate in 2022 was 2.1% and unemployment plunged to historically low levels. The US constitutes less than 5% of the global population, while Americans earn around 20% of the world’s total income, as per the United States Trade Representative.
With high inflation and interest rates in 2023, the economic situation has been uncertain. Economists have had divided thoughts on whether the US was on the verge of recession, or the economy was headed for a soft landing. After recession fears in 2023, the US economy is projected to beat consensus expectations in 2024, as per Goldman Sachs Research. According to the estimates, the GDP of the US is expected to grow by 2.1% in 2024 compared to the 1% growth projected by Bloomberg’s economists. Goldman Sachs Research insists that the probability of a US recession is minimal than what many economists are projecting. The probability of a US recession is 15% over the next 12 months, as per Goldman Sachs.
The Fed is expected to keep rates steady until a rate cut in the fourth quarter of 2024. Goldman Sachs’ analysts believe that the hard part of the inflation fight seems to be over and with a positive job market, the economy will be on track for recovery. With the overall economy getting stable growth in 2024, the labor market is also projected to be nearly stable in 2024. Job growth is forecasted at around 175,000 per month for the first half of 2024 and it is expected to slow down to 100,000 in the second half of 2024. Other markets are expected to report a modest growth next year. In 2024, home sales are on track to be weak due to high mortgage rates.
Businesses in the Richest US States
The US is home to some of the biggest companies in the world. Walmart Inc. (NYSE:WMT) leads the Fortune 500 list for 2023. While Apple Inc. (NASDAQ:AAPL) is the most valuable company in the world by market cap. The richest states in America are home to some of the leading US companies.
General Electric Company (NYSE:GE) is a multinational giant that operates in various industries including power, renewable energy, aerospace, additive manufacturing, and digital industry, among others. Based in Boston, Massachusetts, General Electric Company (NYSE:GE) serves its customers in over 150 countries. On November 16, General Electric Company (NYSE:GE) announced that GE Vernova completed its first onshore wind turbine produced on its new wind manufacturing assembly line in Schenectady, New York. The facility will manufacture GE Vernova’s 6.1-158 onshore wind turbine. With almost 200 skilled employees, General Electric Company’s (NYSE:GE) renewable energy facility will manufacture over 100 units of GE Vernova’s workhorse 6 MW onshore turbines in 2024. GE Vernova is working hard on different renewable techniques. On November 16, General Electric Company (NYSE:GE) announced that GE Vernova and Our Next Energy Inc. (ONE) have collaborated towards enhancing battery energy storage solutions in the US through locally manufactured batteries.
Connecticut is also one of the richest states in America and Cigna Corporation (NYSE:CI) is one of the biggest Connecticut companies. Cigna Corporation (NYSE:CI) has more than 74,000 employees. On October 12, Cigna Corporation (NYSE:CI) announced that it is launching its Medicare Advantage (MA) plan for Nevada. The Medicare Advantage (MA) plan will be available for two counties in the Las Vegas area, which will be effective January 1, 2024. On October 17, Cigna Corporation (NYSE:CI) announced its expansion for Medicare Advantage (MA) to four new counties in Asheville, North Carolina. The Medicare Advantage plan includes several medical benefits, such as dental allowance, financial wellness incentives, and hearing and vision benefits. The plan will be effective from January 1, 2024, in Avery, Madison, Mitchell, and Yancey counties.
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is a top multinational information technology services firm, based out of Teaneck, New Jersey. On November 1, Cognizant Technology Solutions Corporation (NASDAQ:CTSH) announced its earnings for the third quarter of 2023. The company posted earnings per share of $1.16 for Q3 2023, beating EPS estimates by $0.07. The revenue was reported at $4.9 billion, which came within the company’s guidance range. Cognizant Technology Solutions Corporation (NASDAQ:CTSH) continued growth in its bookings, despite ongoing economic upheaval. Here are some of the comments from the Q3 2023 earnings call:
“We recorded another quarter of bookings growth, up approximately 9% year-over-year. We ended Q3 with a record trailing 12-month bookings growth of $26.9 billion, up 16% year-over-year and a strong book-to-bill of 1.4x. We have sustained our large deal momentum through Q3. Approximately 30% of our in-quarter Q3 bookings were large deals and 3 of these deals exceeded $100 million each.”
Let’s now take a look at the richest states in America.
25 Richest States in America
Our Methodology
To compile our list of the 25 richest states in America, we sourced data from the US Census Bureau. We proceeded by choosing the poverty rate and per capita income. We chose the 25 states with the highest per capita income with a maximum poverty rate of 13%. The poverty rate refers to the percentage of the population below the poverty level. The most recent official data available is from 2021.
Finally, we ranked the 25 richest states in America in ascending order of the per capita income.
Note: The data for the median household income is also taken from the US Census Bureau.
25 Richest States in America
25. Kansas
Per Capita Income (2021): $34,968
Poverty Rate: 12%
Kansas is a state in the Midwestern US with a median household income of $64,521. Kansas has a per capita income of $34,968 and makes it to our list of the richest states in America.
24. Nebraska
Per Capita Income (2021): $35,189
Poverty Rate: 11.20%
Nebraska is another midwestern state, having a median household income of $66,644. With a poverty rate of 11.20% and a per capita income of $35,189, Nebraska ranks 24th among the richest states in America.
23. Florida
Per Capita Income (2021): $35,216
Poverty Rate: 12.70%
Florida is located in the southeastern part of the US. The US state has a median household income of $61,777, as of 2021. Florida with a per capita income of $35,216 ranks among the richest states in America.
22. Maine
Per Capita Income (2021): $36,171
Poverty Rate: 10.80%
Maine is the northeasternmost US state which has a median household income of $63,182. Maine is one of the richest states in America with a per capita income of $36,171.
21. Wyoming
Per Capita Income (2021): $36,288
Poverty Rate: 11.80%
Wyoming is located in the Western US, having a median household income of $68,002. With a poverty rate of 11.80% and a per capita income of $36,288, Wyoming ranks 21st on our list of the richest states in America.
20. Wisconsin
Per Capita Income (2021): $36,754
Poverty Rate: 10.70%
Wisconsin is a state in the Midwestern US with a median household income of $67,080. Wisconsin has a per capita income of $36,754 and makes it to our list of the richest states in America.
19. North Dakota
Per Capita Income (2021): $37,343
Poverty Rate: 11.50%
Another midwestern US state, North Dakota has a median household income of $68,131. North Dakota is one of the richest states in America with a per capita income of $37,343.
18. Pennsylvania
Per Capita Income (2021): $37,725
Poverty Rate: 11.80%
Pennsylvania is one of the richest states in America. Pennsylvania has a median household income of $67,587 and a per capita income of $37,725.
17. Oregon
Per Capita Income (2021): $37,816
Poverty Rate: 12.10%
Oregon is located in the Pacific Northwest region of the US. With a median household income of $70,084 and a per capita income of $37,816, Oregon ranks 17th among the richest states in America.
16. Vermont
Per Capita Income (2021): $37,903
Poverty Rate: 10.40%
Located in Northeastern US, Vermont has a median household income of $67,674. Vermont has a per capita income of $37,903 and makes it to our list of the richest states in America.
15. Delaware
Per Capita Income (2021): $38,917
Poverty Rate: 9.40%
Delaware is a small Mid-Atlantic US state and has a median household income of $72,724. Delaware is one of the richest states in America with a per capita income of $38,917.
14. Hawaii
Per Capita Income (2021): $39,045
Poverty Rate: 10.20%
An island state in the Western US, Hawaii has a median household income of $88,005. Hawaii has a per capita income of $39,045 and makes it to our list of the richest states in America.
13. Alaska
Per Capita Income (2021): $39,236
Poverty Rate: 11%
Alaska is one of the richest states in America with a median household income of $80,287. Alaska has a poverty rate of 11% and a per capita income of $39,236.
12. Illinois
Per Capita Income (2021): $39,571
Poverty Rate: 11.90%
Illinois is a state in the Midwestern US with a median household income of $72,563. Illinois has a per capita income of $39,571 and makes it to our list of the richest states in America.
11. Rhode Island
Per Capita Income (2021): $39,603
Poverty Rate: 10.80%
Rhode Island is one of the richest states in America with a median household income of $74,489. Rhode Island has a poverty rate of 10.80% and a per capita income of $39,603.
10. Minnesota
Per Capita Income (2021): $41,204
Poverty Rate: 9.60%
Minnesota is one of the richest states in America with a median household income of $77,706. Minnesota has a poverty rate of 9.60% and a per capita income of $41,204.
9. California
Per Capita Income (2021): $41,276
Poverty Rate: 12.20%
Located in the west part of the US, California has a median household income of $84,097. California has a per capita income of $41,276 and makes it to our list of the richest states in America.
8. Colorado
Per Capita Income (2021): $42,807
Poverty Rate: 9.40%
Located in the West US, Colorado has a median household income of $80,184. With a poverty rate of 9.40% and a per capita income of $42,807, Colorado ranks eighth among the richest states in America.
7. Virginia
Per Capita Income (2021): $43,267
Poverty Rate: 10.60%
Virginia is a Southeastern US state, having a median household income of $80,615. Virginia has a per capita income of $43,267 and makes it to our list of the richest states in America.
6. Washington
Per Capita Income (2021): $43,817
Poverty Rate: 10%
Washington is one of the richest states in America with a median household income of $82,400. Washington has a poverty rate of 10% and a per capita income of $43,817.
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Disclosure: None. 25 Richest States in America is originally published on Insider Monkey.