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U.S. States’ GDP Compared to Countries

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.

u.s. states' gdp compared to countries
u.s. states' gdp compared to countries

Pixabay/Public Domain

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.   Suggested articles:

Disclosure: None. U.S. States' GDP Compared to Countries is originally published at Insider Monkey.

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