50 in 50: Arizona

50 states in 50 weeks: U.S. states economic and infrastructure highlights.

Key Economic Indicators

GDP: $335.3 billion

GDP 5-year growth rate (2017-2021): 2.6% (U.S: 1.6%)

GDP per capita: $46,074 (U.S.: $58,154)

Population: 7.3 million

Population 5-year growth rate (2017-2021): 0.8% (U.S.: 0.5%)

Unemployment: 4.1% (U.S.: 3.9%)

Economic health ranking: #38 out of 50

Fiscal health ranking: #18 out 50

Overall tax climate ranking: #24 out of 50

Key Sectors and Metro Areas

Top five industry sectors by 2021 GDP:

GDP ($ billions)
% of total GDP
Real estate and rental and leasing
Health care and social assistance
State and local
Retail trade

Top three industry sectors by GDP 5-year CAGR (2017-2021):

GDP 5-year CAGR
Management of companies and enterprises
Nondurable goods manufacturing

Top three metro areas by GDP:

  • Phoenix
  • Tucson
  • Yuma

Top three areas by population 5-year CAGR (2016-2020):

  • Phoenix-Mesa-Chandler
  • Prescott Valley-Prescott
  • Laka Havasu City-Kingman

Infrastructure Highlights

Infrastructure: ASCE Infrastructure Grade (2020): C

Arizona was the third ranked state in net population growth from 2020 to 2021 and the Grand Canyon State’s GDP has also been experiencing healthy growth rates. According to the ASCE, the areas in need of most infrastructure improvement are Roads, Drinking Water, Wastewater, Dams and Levees. The IIJA will make the following funds available over the next five years:

Improvement Area
$5.4 billion
Build, repair, and maintain roads and highways
$884 million
Public transportation systems
$547 million
Land ports of entry
$348 million
Airports – runways, taxiways, towers, terminals
$290 million
Water and wastewater projects
$225 million
Bridge replacement and repair
$100 million
$76 million
Expansion of an electric vehicle (EV) charging network
$54 million
Replacement of lead pipes

Construction spending (Value of Construction Put in Place – CPiP):

  • Private Nonresidential CPiP: $9.4 billion in 2020; 23.6% compounded annual growth rate (2016-2020), above overall U.S. growth rate of 2%
  • State & Local CPiP: $5.0 billion in 2020; 15.6% compounded annual growth rate (2016-2020), above overall U.S. growth rate of 4.8%

AE Industry

ENR 500 firm headquarters (2021): 1

M&A activity since 2018:

  • 10 deals with AZ buyers
  • 19 deals with AZ sellers 

For customized market research, contact Rafael Barbosa at [email protected] or 972.266.4955. Connect with him on LinkedIn.

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