Florida’s economy grew by $140.4 billion over the past year to $1.58 trillion, yet slipped to the 16th largest globally due to Spain’s faster growth.
Florida’s economy grew by $140.4 billion over the past year, reaching a gross domestic product (GDP) of $1.58 trillion, according to data from the Florida Chamber Foundation for 2023. Despite this increase, the state slipped from the 15th to the 16th largest economy in the world.
The Florida Chamber Foundation attributes the ranking drop to Spain’s quickening economic growth, which surpassed Florida’s by $22.5 billion. Florida’s economy, however, remains nearly equal to Spain’s, being just 0.1 percent smaller.
The state’s economic growth has been driven by diverse sectors, according to the dataset, including technology, tourism, real estate, healthcare, and agriculture.
A secondary factor in Florida’s economic performance continues to be its high rate of net income migration within the United States. The state gained $4.12 million per hour in net income migration, more than three times that of Texas, the second-highest state. The average income for those moving to Florida was $155,600, compared to $96,000 for those leaving.
The migration of high-income residents has boosted local economies, increased consumer spending, and raised property values. However, it has also created challenges, particularly in the housing market where rising prices and potential shortages pose burgeoning issues. The growing population also demands more investment in infrastructure, transportation, healthcare, and public services.
Projections indicate that Florida’s population will grow by 2.8 million by 2030, adding to the current 23 million residents, which requires the creation of approximately 1.4 million new jobs. Urban planners and local governments are preparing to expand housing, public transportation, and educational facilities to accommodate the influx, and the state’s healthcare system will also need to scale up to meet increased demand.
Despite the recent slip in ranking, Florida’s growth rate suggests it may soon surpass Australia and South Korea, currently ranked 13th and 14th globally. Over the past year, Florida’s GDP growth outpaced both nations, indicating strong potential for climbing the global economic rankings.