What Is the Gross Domestic Product (GDP) of Arizona?
Explore Arizona's economic performance. Understand its Gross Domestic Product (GDP) and the key factors shaping the state's financial outlook.
Gross Domestic Product (GDP) serves as a fundamental economic indicator, reflecting the total monetary value of all finished goods and services produced within a defined geographical area over a specific period. This measure offers insight into the overall size and health of an economy.
Defining Gross Domestic Product
Gross Domestic Product represents the comprehensive monetary value of all finished goods and services generated within a state’s borders over a specific timeframe, typically measured annually or quarterly. This calculation includes consumer spending, business investment, government spending, and net exports. Certain activities like unpaid household work or illegal market transactions are generally excluded from GDP calculations.
While nominal GDP reflects current market prices, real GDP adjusts for inflation, providing a more accurate comparison of economic output across different periods. Real GDP is preferred for assessing true economic growth, as it removes the distorting effects of price changes.
Arizona’s Current GDP and Trends
Arizona’s economy has demonstrated consistent growth, with its Gross Domestic Product reaching approximately $445.0 billion in 2025. This figure represents a 4.0% increase from 2024. Over the five years leading up to 2025, Arizona’s GDP has grown at an annualized rate of 3.0%.
Looking at inflation-adjusted figures, Arizona’s real GDP reached $433.8 billion in 2024, marking a 2.7% increase from 2023. This makes 2024’s real GDP the highest recorded to date. Arizona’s trailing five-year GDP growth ranks it 7th among all 50 U.S. states.
In the final quarter of 2024, Arizona’s real GDP saw a 3.3% increase at a seasonally-adjusted annual rate. This growth surpassed the U.S. national average of 2.4% during the same period, positioning Arizona 11th nationally. For the entirety of 2024, the state’s real GDP expanded by 5.6%, slightly exceeding the national average of 5.3%.
Key Sectors Contributing to Arizona’s GDP
Arizona’s economic landscape is shaped by diverse sectors that significantly contribute to its overall GDP. The real estate and rental and leasing industry stands out as a major contributor, generating $75.1 billion in 2024. This sector, along with healthcare and social assistance, and manufacturing, collectively represented 40.5% of the state’s GDP in 2025.
Professional and business services also play a substantial role, contributing $57.7 billion to Arizona’s GDP in 2024. The government sector is another significant economic driver, accounting for $47.0 billion in the same year. These sectors reflect the varied nature of Arizona’s economic output, encompassing both service-oriented and goods-producing industries.
Beyond these top contributors, other areas such as finance and insurance, and the information industry, contribute to the state. The information industry, for instance, experienced considerable growth, with its 2024 GDP being 2.2 times its 2014 value.