In an effort to attract businesses, states in the U.S. are marketing themselves as safe havens for corporate leaders who may be concerned about economic stability. CNBC's annual America’s Top States for Business rankings have given extra attention to state economies in 2025. The findings suggest that certain states could be especially vulnerable if national economic conditions decline.
Although the likelihood of a recession might be decreasing, it seems states are betting on the possibility that corporate leaders remain apprehensive.
The overall methodology for determining the top states emphasizes factors currently prioritized by these regions, with the Economy category holding significant weight in this year's study of competitiveness.
To evaluate each state's economy, traditional measures were considered, such as growth in state gross domestic product, job growth, fiscal health of the state, number of major corporations headquartered there, and local housing market strength. Additionally, due to policies from the Trump administration aiming to cut federal spending and increase tariffs, each state's reliance on federal government support was assessed. Their exposure to a trade war was also evaluated using data from Trade Partnership Worldwide, a research firm based in Washington D.C.
While some states are entering these uncertain times with strong positions, others appear more susceptible to downturns. According to the analysis, New Mexico ranks fifth among the most vulnerable state economies during potential recessions.
The top five weakest state economies are:
1. Alaska
2. Mississippi
3. Kansas
4. Louisiana
5. New Mexico
