ICYMI: Arizona Is Number Two in the Nation for Economic Performance

Reflection of Governor Hobbs’ efforts to attract top-tier companies, build world-class workforce, and lower costs for Arizonans

Phoenix, AZ - This week, the American Legislative Exchange Council (ALEC) released its 2026 Rich States, Poor States report and ranked Arizona second in the nation for economic performance and fifth in economic outlook under Governor Hobbs’ leadership. The ranking factors in key measures, including cumulative GDP growth, domestic migration, and non-farm employment growth. This achievement is a reflection of Governor Hobbs’ efforts to lower costs for Arizonans and attract private sector investment to the state.

Statement from Governor Katie Hobbs

“We are securing opportunity for communities throughout Arizona with our dynamic and growing economy. I’m thrilled ALEC has ranked Arizona second in the nation for economic performance and fifth for economic outlook under my leadership. Since day one as Governor, I’ve made it my mission to lower costs for working families and make Arizona the best place to pursue opportunity, security, and freedom. 

“We’ve significantly grown our economy, with more people and businesses choosing Arizona as their home. We’ve brought in some of the world’s most advanced companies, cultivating the top-notch talent they need right here at home and providing Arizonans with family-sustaining jobs. We’ve taken action to strengthen our energy grid and secure our water future. And we’ve lowered the cost of housing, health care, child care, utilities, and food—things Arizona families rely on every day.

“This is the foundation for Arizona’s economic growth, security, and prosperity.”

Statement from Sandra Watson, President and CEO of the Arizona Commerce Authority

“Arizona’s remarkable rise as a global innovation hub reflects years of strategic vision and collaborative leadership. My sincere thanks to Governor Hobbs and our Legislature for their leadership to foster an environment that has made Arizona the best place in the country for business and innovation.”

Statement from Mary Foote, Arizona Office of Economic Opportunity Director 

“The findings in this report reflect the fundamental strengths of Arizona’s economic landscape—driven by a diverse industrial mix and a resilient workforce. We will continue to develop the state’s workforce strategies to maintain this momentum, ensuring that Arizona remains well-positioned for sustainable, predictable growth in an evolving national economy.”

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