In this article, we will be taking a look at the 50 U.S. States’ GDP compared to countries. To skip our detailed analysis, you can go directly to see the top 10 U.S. States’ GDP compared to other countries.
There are a lot of tiny countries that show up in lists of richest countries by GDP per capita. According to Worldbank, Lichtenstein has the highest GDP per capita in the world with an estimated average income of $158,000 per person. This is a very misleading statistic though. Lichtenstein’s population is only 38,000. This isn’t a country; it is a town. If we use the same approach, then Atherton, a small town in California, would be among “richest countries in the world” with an average income of $171,000 per person. We can get even more ridiculous and pretend that Medina, a small city in Washington that’s home to billionaires Jeff Bezos and Bill Gates, is a country with its population of 2900.
Four years ago, Texas Governor Greg Abbott said “the Texas economy is even larger than the economy of Russia”. He is right. If we treat U.S. states as countries, several of them will be among the richest countries in the world. That’s what we did in this article. Investors might be better off by investing in individual states’ companies instead of the broader S&P 500 Index that invests in the biggest companies in the entire market. Let’s first take a look at the bigger picture and then we will talk about the economically biggest states in the United States.
Comparing the GDPs of the biggest countries in the world isn’t really very interesting. Everyone knows that the top two economies in the world are China and the U.S., and the U.S. is first by a decent margin and has been top for around a century now. After all, the U.S. GDP in 2021 was $23 trillion while China was second at $17.7 trillion, a massive gap to the U.S.
Not only is the U.S. the biggest economy in the world, it is also the wealthiest country in the world even though these resources are extremely unevenly distributed. Having weathered some massive storms during the decades, be it the Great Depression in the 1930s, World War II in the 1940s, the Vietnam War from the 1950s to the early 1970s, the 2008 Great Recession and recently the Covid-19 pandemic, the U.S. economy has always come back strong, headed by its biggest industries which include professional, scientific and technical services, healthcare, finance, insurance and real estate, with the latter being the biggest industry in the country right now.
Having emerged from the worst pandemic in a century which seriously affected the country’s economy, 2022 seemed to be earmarked as the year for recovery, but rising inflation rates and subsequently rising interest rates to combat inflation, resulted in a 2022 where the economy actually receded by 0.6% in Q2 2022 as the manufacturing sector slowed down. In June 2022, the inflation rate was recorded at 9.1% which was the largest such increase in 40 years, though it has steadily dropped in every month since, which has also allowed the U.S. to post GDP growth of 3.2% in Q3 2022, reflecting an increase in both exports and consumer spending as inflation’s impact on disposable income decreased slightly.
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The U.S. is truly a capitalist’s dream with laws and regulations encouraging businesses and providing them with incentives and tax breaks while there aren’t as many rules on consumer protections which is why companies derided for their customer service are still not just alive and kicking, but thriving as can be seen in the most hated companies in America. This culture, as well as the power of corporations who are allowed to lobby and influence laws, has seen most of the biggest companies in the world are located in the U.S. with 585 companies in the Forbes 2000 being from the U.S., which means nearly 30% were from the U.S. alone. This is why some of the biggest companies in the U.S., none of which are state-owned unlike many other major companies, such as Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN) and Alphabet Inc. (NASDAQ:GOOG) all have a market cap which is greater than many countries.
As mentioned earlier, the U.S. has faced a difficult 2022 but it seems that 2023 will be even worse. In 2022, the S&P 500 lost 19.44% as U.S. stocks saw their worst first half in over half a century. Meanwhile, according to Bloomberg, the U.S. will officially face a recession in 2023 and according to Barclays Capital Inc., this will the one of the worst recessions the global economy has seen in more than forty years while Ned Davis Research believes that the chances of a severe global downturn are at least 65%, all of which indicate that for those who’ve endured the great crash of 2022, things are going to get much worse before they get better. All of this will happen under a Federal Reserve which has conducted its biggest tightening campaign in a long time.
On the other hand, some companies such as The Goldman Sachs Group, Inc. (NYSE:GS) and JPMorgan Chase & Co. (NYSE:JPM) have predicted that there is a strong chance the market could defy the bearish sentiments dominating the economic landscape right now. If investors get this right, they could be in for some huge gains as the market is already suppressed after an underwhelming 2022. If they get it wrong, they could be in for a world of pain. It does seem likely that bonds will be the preferred choice for many investors even as the asset class plunged in 2022.
The U.S. is often categorized as a democracy but the more accurate term would perhaps be a constitutional federal republic. While there is a federal government in the U.S. and it deals with laws that are applicable to every single state in the nation, these generally deal with overarching issues such as bankruptcy, immigration, social security and federal criminal laws but the main governance is left to each state which is why laws can vary widely from state to state. For example, during the pandemic, Republican states didn’t enforce as many restrictions as Democratic states did. While states such as California have high living costs and relatively high taxes, especially for corporations, states such as Texas do not which is why many major companies such as Toyota Motor Corporation (NYSE:TM), Oracle Corporation (NYSE:ORCL) and lately Tesla, Inc. (NASDAQ:TSLA) have switched their headquarters from California to Texas.
Considering the size of the U.S. economy, we thought it would be interesting to consider each U.S. state as a separate country, which is often bigger in terms of economy, size and population than many European countries. We then compared the GDP of each U.S. state, taken from the U.S. Bureau of Economic Analysis, to the GDP of each country, taken from the World Bank. We used 2021 data for both to have an apples to apples comparison. After merging the data, the results were incredible. One US state alone would be the fourth biggest country in the world by GDP, while another would also make the top 10. Of the 22 biggest countries in the world by GDP, 7 would be U.S. states. Missouri has a bigger economy than Pakistan, the fifth most populous country in the world. Texas has a bigger economy than Canada, South Korea, Australia, Spain, Brazil and Russia. And out of 195 total countries in the world, just 98 have a GDP higher than the state with the smallest GDP in Vermont. These statistics signify just how impressive the U.S. economy is, and that while we consider it to be one country, it is basically an amalgamation of many countries. Here are our rankings that compare each states’ GDP to other countries:
148. Vermont
Total GDP (in million): 37,104
The economy of Vermont is largely centered on the service sector, with a small agricultural sector and a smaller manufacturing sector. Vermont is known for its small, independent businesses, and tourism is also an important contributor to the state’s economy. The state is home to a number of large companies, including Vermont Teddy Bear Company and Keurig Green Mountain, but the majority of businesses in Vermont are small. The state’s natural beauty and outdoor recreational opportunities, including skiing and hiking, make it a popular tourist destination, particularly in the summer and fall months. The state government is also a major employer in Vermont.
147. Estonia
Total GDP (in million): 37,191
146. Bahrain
Total GDP (in million): 38,869
145. Paraguay
Total GDP (in million): 39,495
144. Latvia
Total GDP (in million): 39,854
143. Bolivia
Total GDP (in million): 40,408
142. Uganda
Total GDP (in million): 40,530
141. Wyoming
Total GDP (in million): 41,510
The economy of Wyoming is heavily dependent on the extraction of natural resources, particularly coal, oil, and natural gas. These industries have historically been the main drivers of the state’s economy and have provided much of the state’s revenue.
140. Libya
Total GDP (in million): 42,817
139. Turkmenistan
Total GDP (in million): 45,231
138. Cameroon
Total GDP (in million): 45,338
137. Jordan
Total GDP (in million): 45,744
136. Tunisia
Total GDP (in million): 46,687
135. Azerbaijan
Total GDP (in million): 54,622
134. Congo, Dem. Rep.
Total GDP (in million): 55,351
133. Alaska
Total GDP (in million): 57,349
Alaska’s economy also depends on oil extraction. It is also a tourism destination.
132. Montana
Total GDP (in million): 58,700
The population of Montana is about 1.1 million people. Montana is also a major producer of wheat, barley, and other grains. The extraction of natural resources, including oil, natural gas, and coal, is also an important contributor to the economy of Montana.
131. Uruguay
Total GDP (in million): 59,319
130. South Dakota
Total GDP (in million): 61,685
The population of South Dakota is about 882,000 people. The economy of South Dakota is diverse and includes a mix of industries, including agriculture, tourism, and manufacturing. The state is home to several national parks, including Mount Rushmore National Monument.
129. Slovenia
Total GDP (in million): 61,749
128. Serbia
Total GDP (in million): 63,082
127. North Dakota
Total GDP (in million): 63,560
North Dakota is even smaller than South Dakota in terms of population, but its economy is similar to South Dakota’s. Theodore Roosevelt National Park is located in North Dakota which attracts millions of visitors every year.
126. Panama
Total GDP (in million): 63,605
125. Costa Rica
Total GDP (in million): 64,282
124. Myanmar
Total GDP (in million): 65,092
123. Lithuania
Total GDP (in million): 66,445
122. Rhode Island
Total GDP (in million): 66,571
121. Angola
Total GDP (in million): 67,404
120. Tanzania
Total GDP (in million): 67,841
119. Belarus
Total GDP (in million): 68,205
118. Croatia
Total GDP (in million): 68,955
117. Uzbekistan
Total GDP (in million): 69,239
116. Cote d’Ivoire
Total GDP (in million): 70,043
115. Ghana
Total GDP (in million): 77,594
114. Maine
Total GDP (in million): 77,963
The population of Maine is about 1.4 million people. The state is home to a number of large companies, including L.L. Bean and WEX.
113. Delaware
Total GDP (in million): 81,160
Delaware’s population is about 1 million and companies like DuPont and AstraZeneca call the state home.
112. Bulgaria
Total GDP (in million): 84,056
111. West Virginia
Total GDP (in million): 85,434
West Virginia’s economy is as big as the economy of one of the richest countries in the world, Luxembourg.
110. Luxembourg
Total GDP (in million): 85,506
109. Guatemala
Total GDP (in million): 85,986
108. Oman
Total GDP (in million): 88,192
107. Sri Lanka
Total GDP (in million): 88,927
106. Hawaii
Total GDP (in million): 91,096
Hawaii is the same size as Maine but generate more revenue from tourism.
105. Dominican Republic
Total GDP (in million): 94,243
104. Idaho
Total GDP (in million): 96,283
Idaho, with a population of 1.8 million, is a major producer of potatoes, wheat, and other crops, as well as livestock, including cattle and hogs.
103. New Hampshire
Total GDP (in million): 99,673
New Hampshire is the same size as Hawaii and Maine, but generate more income per capita thanks to companies like BAE Systems.
102. Kuwait
Total GDP (in million): 105,960
101. Ecuador
Total GDP (in million): 106,166
100. Puerto Rico
Total GDP (in million): 106,526
99. Cuba
Total GDP (in million): 107,352
98. New Mexico
Total GDP (in million): 109,583
New Mexico’s population is around 2.2 million.
97. Kenya
Total GDP (in million): 110,347
96. Ethiopia
Total GDP (in million): 111,271
95. Slovak Republic
Total GDP (in million): 116,527
94. Mississippi
Total GDP (in million): 127,308
The population of Mississippi is about 2.9 million people.
93. Morocco
Total GDP (in million): 142,866
92. Nebraska
Total GDP (in million): 146,285
The population of Nebraska is about 1.9 million people.
91. Arkansas
Total GDP (in million): 148,676
Arkansas, a state with a total population of 3 million, is home to Walmart.
90. Algeria
Total GDP (in million): 163,044
89. Qatar
Total GDP (in million): 179,677
88. Hungary
Total GDP (in million): 181,848
87. Kansas
Total GDP (in million): 191,381
Kansas’ economy is bigger than Hungary’s or Qatar’s, but don’t expect the state to host the next World Cup anytime soon.
86. Nevada
Total GDP (in million): 194,487
The population of Nevada is slightly more than 3 million and the state’s economy depends on tourism.
85. Kazakhstan
Total GDP (in million): 197,112
84. Ukraine
Total GDP (in million): 200,086
83. Iraq
Total GDP (in million): 207,889
82. Greece
Total GDP (in million): 214,874
81. Oklahoma
Total GDP (in million): 215,336
Oklahoma’s economy is bigger than Greece’s.
80. Iowa
Total GDP (in million): 216,860
Iowa’s population is slightly larger than Nevada’s, yet its economy is bigger than Iraq’s, a country with the fifth largest oil reserves in the world.
79. Peru
Total GDP (in million): 223,250
78. Utah
Total GDP (in million): 225,340
Utah’s population is similar to Iowa’s but its economy is even bigger than Peru’s, a country with more than 33 million people.
77. Kentucky
Total GDP (in million): 237,182
Rural Kentucky is home to 4.5 million people and the Bluegrass state is comparable to New Zealand in terms of population and economy.
76. New Zealand
Total GDP (in million): 249,886
75. Portugal
Total GDP (in million): 253,663
74. Alabama
Total GDP (in million): 254,110
Who would have guessed that Alabama’s economy is bigger than Portugal’s?
73. Louisiana
Total GDP (in million): 258,571
Louisiana is similar to Kentucky in terms of population and home to one fifth of the refining industry in the US.
72. South Carolina
Total GDP (in million): 269,802
South Carolina is home to 5.2 million people and the state’s economy is almost as big as Czechia’s.
71. Oregon
Total GDP (in million): 272,191
Oregon is the number one softwood lumber producer in the country. The state is one fifth the size of Romania in terms of population but has a similar size economy.
70. Czechia
Total GDP (in million): 281,778
69. Romania
Total GDP (in million): 284,088
68. Finland
Total GDP (in million): 297,302
67. Connecticut
Total GDP (in million): 298,395
Connecticut is a tiny state with 3.7 million people, yet was able to generate a GDP per capita of more than $82000.
66. Colombia
Total GDP (in million): 314,464
65. Chile
Total GDP (in million): 317,059
64. Pakistan
Total GDP (in million): 348,263
63. Missouri
Total GDP (in million): 358,572
Missouri’s economy is the same size as Iran’s.
62. Iran, Islamic Rep.
Total GDP (in million): 359,713
61. Vietnam
Total GDP (in million): 366,138
60. Wisconsin
Total GDP (in million): 368,611
Wisconsin’s population is less than 6 million, yet its economy is bigger than Vietnam’s which is home to nearly 100 million people.
59. Hong Kong SAR, China
Total GDP (in million): 369,176
58. Malaysia
Total GDP (in million): 372,981
57. Philippines
Total GDP (in million): 394,086
56. Singapore
Total GDP (in million): 396,987
55. Denmark
Total GDP (in million): 398,303
54. Egypt, Arab Rep.
Total GDP (in million): 404,143
53. Minnesota
Total GDP (in million): 412,459
Minnesota’s economy is bigger than Singapore’s, Denmark’s or Egypt’s which is home to more than 100 million people.
52. Indiana
Total GDP (in million): 412,975
Indiana isn’t oil rich but its economy is the same size as UAE’s.
51. United Arab Emirates
Total GDP (in million): 415,022
50. Bangladesh
Total GDP (in million): 416,265
49. South Africa
Total GDP (in million): 419,015
48. Arizona
Total GDP (in million): 420,027
Arizona’s economy is as big as the economy of the richest country in Africa.
47. Tennessee
Total GDP (in million): 427,125
Tennessee’s economy is bigger than Bangladesh’s economy, a country that is home to 166 million people.
46. Colorado
Total GDP (in million): 436,359
Colorado’s economy is as big as Nigeria’s economy even though its population is a tiny fraction of the 211 million people living in the oil-rich African country.
45. Nigeria
Total GDP (in million): 440,834
44. Maryland
Total GDP (in million): 443,930
Maryland’s economy is bigger than Nigeria’s economy.
43. Austria
Total GDP (in million): 480,368
42. Norway
Total GDP (in million): 482,175
41. Venezuela, RB
Total GDP (in million): 482,359
40. Argentina
Total GDP (in million): 487,227
39. Israel
Total GDP (in million): 488,527
38. Ireland
Total GDP (in million): 504,183
37. Thailand
Total GDP (in million): 505,947
36. Michigan
Total GDP (in million): 572,206
Michigan’s economy is bigger than Thailand’s, Ireland’s, Israel’s, and Argentina’s.
35. Belgium
Total GDP (in million): 594,104
34. Virginia
Total GDP (in million): 604,958
In terms of size Virginia is in between Belgium and Sweden.
33. Sweden
Total GDP (in million): 635,664
32. Massachusetts
Total GDP (in million): 641,332
Sweden consistently ranks among the most innovative countries in the world, yet Massachusetts’ economy is bigger.
31. North Carolina
Total GDP (in million): 662,121
North Carolina’s economy is also bigger than Sweden’s.
30. Washington
Total GDP (in million): 677,489
Washington’s economy is almost as big as Poland’s.
29. Poland
Total GDP (in million): 679,445
28. New Jersey
Total GDP (in million): 682,946
New Jersey, Georgia, and Ohio have bigger economies than Poland.
27. Georgia
Total GDP (in million): 691,627
26. Ohio
Total GDP (in million): 756,617
25. Switzerland
Total GDP (in million): 800,640
24. Turkiye
Total GDP (in million): 819,035
23. Saudi Arabia
Total GDP (in million): 833,541
22. Pennsylvania
Total GDP (in million): 844,496
Pennsylvania doesn’t have the biggest oil reserves in the world, but its economy is bigger than Saudi Arabia’s.
21. Illinois
Total GDP (in million): 945,674
Illinois’ economy is comparable to Netherlands’ economy.
20. Netherlands
Total GDP (in million): 1,012,847
19. Indonesia
Total GDP (in million): 1,186,093
18. Florida
Total GDP (in million): 1,255,558
With its nearly $1.3 trillion economy Florida would be among the 20 biggest economies in the world.
17. Mexico
Total GDP (in million): 1,272,839
16. Spain
Total GDP (in million): 1,427,381
15. Australia
Total GDP (in million): 1,552,667
14. Brazil
Total GDP (in million): 1,608,981
13. Russian Federation
Total GDP (in million): 1,778,783
12. Korea, Rep.
Total GDP (in million): 1,810,956
11. New York
Total GDP (in million): 1,901,297
If New York were a standalone country, its economy would be bigger than South Korea’s, Russia’s, Brazil’s, and Australia’s.
Click to continue reading and see the 10 U.S. States’ GDP compared to countries.
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Disclosure: None. U.S. States’ GDP Compared to Countries is originally published at Insider Monkey.
