In 2024, the top 10 U.S. states will boast the strongest economies.

• The economy of a state plays a vital role in drawing new businesses and keeping existing ones.
• A state with stable finances, ample budget reserves, and solid growth is preferred by companies.
• In CNBC's Top States for Business study, the economy is a crucial category, with some states performing significantly better than others.

Attracting business to a state isn't solely dependent on the economy, especially outside of election years.

Companies seek to establish themselves in states with robust economic growth, sound financial stability, and a thriving housing market. Additionally, they prefer locations with a diverse economy featuring numerous large corporations for partnership opportunities and a steady influx of international investment.

The Economy category is crucial in CNBC's annual America's Top States for Business rankings, as states often highlight their economies when marketing themselves to businesses. Our research examines ten categories of competitiveness, with Economy being the most frequently mentioned in state economic development marketing. In this year's methodology, Economy accounts for 14% of a state's total score.

We assess economic growth and job growth by examining state finances, fiscal reserves, pension obligations, credit ratings, the health of the housing market, the number of major corporations headquartered in each state, new business formations, and foreign direct investment in each state, both in absolute terms and as a percentage of GDP.

Despite some states still facing challenges in 2024, these ten states are experiencing growth and prosperity.

10. Delaware

Delaware's corporate-friendly legal system and favorable business environment have made it a popular choice for incorporation, with two-thirds of the Fortune 500 companies headquartered elsewhere. Despite a decline in economic performance in 2023, Delaware's economy rebounded in 2024, thanks to a surge in new business formations.

The economy in 2024 received a score of 231 out of 350 points, with the top-performing states earning a grade of B-.

GDP (2023) $74.3 billion (-1.2%)

Job Growth (2023): 1.2%

Debt Rating & Outlook (Moody's): Aaa, stable

Investment in foreign countries in 2022 was $276 million, which is equivalent to 0.4% of the country's GDP.

Major Corporate Headquarters: Dupont De Nemours, Incyte

9. Idaho

The housing market in Idaho has cooled down significantly from its recent hot streak. Prices stabilized and even decreased in some areas last year, but they are now on the rise once again, indicating stability in this popular destination as inventory remains limited. Despite this, the overall economic growth in Idaho is strong, and the state's credit rating is solid. Additionally, new business applications increased by 4.5% last year, continuing a trend that has been going on since 2009.

The economy in 2024 received a score of 232 out of 350 points, earning the top states a grade of B.

GDP (2023): $94.9 billion (+3.5%)

Job Growth (2023): 2.5%

Debt Rating & Outlook (Moody's): Aaa, stable

Foreign Direct Investment (2022): $0

Major Corporate Headquarters: Micron Technology, Lamb Weston Holdings

8. Nevada

Despite having the second-highest unemployment rate in the country, Nevada experienced robust job growth throughout most of the previous year. A continuous flow of new residents has fueled a robust housing market. Although inventory is limited, new construction is thriving. According to the Pew Charitable Trusts, the state's finances are in relatively good shape, with tax revenues exceeding their 15-year average.

The economy in 2024 received a score of 233 out of 350 points, earning the top states a grade of B.

GDP (2023): $192.2 billion (+2.7%)

Job Growth (2023): 3.8%

Debt Rating & Outlook (Moody's): Aa1, stable

Investment in foreign countries (2022): $6 million (0.003% of GDP)

Major Corporations: Las Vegas Sands, MGM Resorts International

7. Georgia

Georgia's economy is thriving due to foreign direct investment, with major companies such as Mercedes-Benz, Nestlé-Purina, and Adidas establishing a presence in the state. According to the U.S. Commerce Department, Georgia has received $9.7 billion in total planned investments as of 2022, making it one of the nation's top destinations for international capital. Despite a slow growth rate in 2023, the state remains a strong economic force.

The economy in 2024 received a score of 244 out of 350 points, earning the top states a grade of B.

GDP (2023): $661.1 billion (+0.8%)

Job Growth (2023): 1.2%

Debt Rating & Outlook (Moody's): Aaa, stable

Investment in foreign countries in 2022 was $9.7 billion, which is equivalent to 1.5% of the country's GDP.

Major Corporate Headquarters: Assurant, Intercontinental Exchange

6. Utah

While eight out of ten major private sector industry groups in Utah experienced job growth last year, the state's historically low unemployment rate has a downside, as stated by Mark Knold, the chief economist of the Department of Workforce Services.

According to Knold, who spoke in January, when labor is scarce, an economy may not be able to grow at its full potential. He attributes this shortage, rather than any inherent economic weakness, to the state's sluggish growth last year.

The economy in 2024 received a score of 245 out of 350 points, earning the top states a grade of B+.

GDP (2023): $219.2 billion (+2.5%)

Job Growth (2023): 2%

Debt Rating & Outlook (Moody's): Aaa, stable

Investment in foreign countries in 2022 was $271 million, which is equivalent to 0.1% of the country's GDP.

Major Corporate Headquarters: Zions Bancorporation, Extra Space Storage

5. Arizona

Arizona's chip industry is experiencing rapid growth, resulting in numerous benefits such as robust job opportunities and a stable housing market. Although inventory is limited, it is more manageable due to high construction activity. However, the state's financial health is not as strong as it should be. According to the Pew Charitable Trusts, if all revenue ceased, Arizona could last for only 98 days on its total reserves (its rainy day fund and its general fund's 2023 ending balance). This is below the national average of 119 days.

The FY2025 budget, which was signed into law by Gov. Katie Hobbs, is a $16.2 billion budget that includes cuts of approximately 3% for most state agencies. Additionally, the budget cuts funding for school construction while making new investments in health care, border security, fentanyl interdiction, and affordable housing.

The economy in 2024 received a score of 255 out of 350 points, earning the top states a grade of B+.

GDP (2023): $414.3 billion (+2.7%)

Job Growth (2023): 2.5%

Debt Rating & Outlook (Moody's): Aa1, stable

Investment in foreign countries in 2022 was $2.8 billion, which is equivalent to 0.7% of the country's GDP.

Major Corporations: Align Technology, First Solar

4. North Carolina

While North Carolina's fiscal picture is admired by many states, its rapid growth has often led to challenges in managing its economy, particularly in the job market, causing concern among state economists.

According to Andrew Berger-Gross, senior economist at the North Carolina Department of Commerce, employers in our state are still hiring, but they've been adding jobs at a slower pace compared to the economic boomtimes of 2021 and 2022.

Berger stated that he and his team were taken aback by the significant decrease in job growth last year, particularly in the professional and business services sector, which was believed to be the driving force of the pandemic-era economy's growth.

Last year, the construction industry experienced steady growth, indicating that the state economy still has some momentum left.

He stated that although employment in North Carolina is slowing down, it is still expanding.

The economy in 2024 received a score of 256 out of 350 points, earning the top states a grade of B+.

GDP (2023): $625.7 billion (+2.7%)

Job Growth (2023): 1.4%

Debt Rating & Outlook (Moody's): Aaa, stable

The amount of foreign direct investment in the country in 2022 was $8.3 billion, which represents 1.4% of the country's GDP.

Major Corporate Headquarters: Bank of America, Duke Energy

3. Tennessee

The economy of the Volunteer State experienced a remarkable growth of 9.2% in GDP in 2021 and 4.8% in 2022, indicating that the next chapter in the economy was about to begin, according to the annual economic report of the University of Tennessee economists.

According to economist Lawrence Kessler's report, recent months have seen a slowdown in consumer spending and job gains, indicating that the economic recovery may be coming to an end.

The major reasons for the increase in student loan payments, according to him, are the resumption of payments and the rise in interest rates.

Despite a slowdown in employment growth, Tennessee's economy expanded at a commendable 3.2% rate in the previous year, maintaining the state's robust financial standing.

In The Volunteer State, things are looking up, as Kessler wrote.

He stated that Tennessee's economic prospects are more optimistic than the country's.

The economy in 2024 received a score of 259 out of 350 points, earning the top states a grade of B+.

GDP (2023): $425.4 billion (+3.2%)

Job Growth (2023): 0.3%

Debt Rating & Outlook (Moody's): Aaa, stable

Investment in Foreign Countries (2022): $6.7 billion (1.6% of GDP)

Major Corporate Headquarters: FedEx, Autozone

2. Texas

The Lone Star State is a driving force for economic growth. Last year, it was the second-fastest growing economy in the country, surpassed only by North Dakota. Texas boasts one of the strongest job growth rates and has more S&P 500 companies than any other state except California. Additionally, the state's financial health is exceptional, with a robust reserve and an impeccable credit rating.

While the Texas economy is not flawless, home price appreciation has slowed at a faster rate than the national average. Additionally, Texas homeowners pay the 12th-highest effective property tax rate in the country, according to an analysis by real estate data firm ATTOM. Furthermore, entrepreneurship in Texas is lagging, with new business applications rising by only 7% last year.

Despite the fact that everything in Texas is large, including the economy, it continues to grow.

The economy in 2024 received a score of 292 out of 350 points, earning the top states a grade of "A."

GDP (2023): $2.03 trillion (+5.7%)

Job Growth (2023): 2.1%

Debt Rating & Outlook (Moody's): Aaa, stable

Investment in foreign countries in 2022 was $20.7 billion, which is equivalent to 1% of the country's GDP.

Major Corporate Headquarters: Oracle, Tesla

1. Florida

Last year, Florida's economy and labor market experienced significant growth, with over 240,000 new jobs added. The housing market is doing well, with good price appreciation and strong construction activity. However, there is a concern about rising foreclosures.

Florida's economic growth, while not the strongest in the country, is among the top ten, thanks to a continuous influx of new residents. Last year, new business applications increased by 9%. Despite having a pristine credit rating, the state's financial health has been put under strain due to its growth. Recently, Gov. Ron DeSantis signed a $116.5 billion budget for FY2025, which he claims reduces state spending, lowers taxes by $1.5 billion, and provides raises for teachers.

The budget includes new funding to safeguard homes from hurricanes and stricter insurance market oversight to prevent an insurance crisis that could harm America's top state economy.

The economy in 2024 received a score of 308 out of 350 points, earning the top states a grade of A+.

GDP (2023): $1.28 trillion (+5%)

Job Growth (2023): 2.5%

Debt Rating & Outlook (Moody's): Aaa, stable

Investment in foreign countries in 2022 was $9.1 billion, which is equivalent to 0.7% of the country's GDP.

Major Corporate Headquarters: CSX, Carnival