These 10 states are running America’s best economies for residents

Economists are increasingly divided on whether a recession is inevitable, or if the U.S. economy is headed for a soft landing. Inflation is trending lower, the stock market is up, the labor market remains strong, and while consumer demand is down, many Americans keep spending. Whatever happens, it will affect different states in different ways.

Some state economies are better situated than others to navigate the twists and turns ahead. Companies are keeping close track as they decide where to do business. And CNBC’s annual competitiveness study, America’s Top States for Business, is keeping track as well. The Economy category is among the heaviest weighted in our methodology this year.

To determine which states have the best economy, we look at overall economic growth and annual job growth on a percentage basis, as well as the health of state finances. We also look at the overall health of the housing market. We measure the breadth of each state’s economy by looking at how many major corporations are headquartered there. And, new in 2023, we are evaluating the entrepreneurial economy based on new business formations.

Some state economies are faltering and at risk of taking a big hit in a recession. But these ten states are well equipped to handle almost anything the national economy throws their way.

For well over a century, the First State’s business laws and court system have made it a favored spot to incorporate a business. And when entrepreneurship booms as it did coming out of the pandemic, Delaware really benefits. New business formations surged by 44% in 2021, the most recent annual figures available from the Census Bureau. Delaware also has strong state finances and a pristine credit rating.

2023 Economy score: 247 out of 360 points (Top States grade: B)

GDP Growth (2022): 2.1%

Job Growth: 2.5%

Debt Rating and Outlook (Moody’s): AAA…