For the sixth straight year, North Carolina ranks among the top five states for economic outlook in the year ahead, according to the American Legislative Exchange Council’s latest Rich States, Poor States report.
Every year since 2007, ALEC has released a State Economic Competitiveness Index report to examine each state’s economic outlook for the coming year. In the 2025 report, North Carolina placed fourth in economic outlook, trailing only behind Indiana, Tennessee, and Utah, which placed first.
The ranking is a forecast based on a state’s current standing in 15 state policy variables that are directly influenced by state lawmakers, according to ALEC, which is America’s largest nonpartisan, voluntary membership organization of state legislators dedicated to the principles of limited government, free markets, and federalism.
“As Washington attempts to tackle debt and dysfunction, the states remain America’s last line of defense for fiscal responsibility and economic growth,” said ALEC president and chief economist Jonathan Williams. “Rich States, Poor States once again illustrates that Americans vote with their feet—leaving high-tax, high-regulation states in favor of those embracing low taxes, balanced budgets, and worker freedom. The states leading our rankings thrive because they put the people first.”
North Carolina also ranked 11th in economic performance, which comes as Republicans in the General Assembly have implemented tax and economic policy reforms over the past decade. The ranking is a backward-looking measure based on a state’s performance on three important variables: State Gross Domestic Product, Absolute Domestic Migration, and Non-Farm Payroll Employment — all of which are highly influenced by state policy.
The rankings match last year’s report and add to the past five years’ standing among the top five. ALEC CEO Lisa B. Nelson said the latest report “demonstrates that states embracing free-market principles become magnets for families, job creators, and opportunity.”
North Carolina is experiencing a population boom, with Wilmington ranking as the No. 1 metro area across the nation where people moved in 2024. As Carolina Journal previously reported, North Carolina is among the most popular destinations for relocation for Generation Z and Millennials, according to a recent analysis of US Census data.
In response to the rankings, state Sen. Lisa Barnes, R-Nash, applauded the state’s ranking and pointed to policies that she said are delivering real results.
Proud to see North Carolina ranked 4th in the nation for economic outlook! Policies are delivering real results with our commitment to growth.#ncpol https://t.co/PWUWvDNSOK
— Sen. Lisa Stone Barnes (@LisaStoneBarnes) April 23, 2025
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