Utah earns 18th consecutive No. 1 ranking for economic outlook

SALT LAKE CITY — For the 18th year in a row, Utah has been ranked first in the “Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index,” continuing a long-standing trend in the annual report’s economic outlook rankings.

The report, published by the American Legislative Exchange Council (ALEC) and co-authored by Reagan economist Dr. Art Laffer, economic policy analyst Stephen Moore, and ALEC President and Chief Economist Jonathan Williams, evaluates states based on various policy variables related to tax structure, government spending, and labor policies. Since its inception in 2007, the report has ranked Utah first.

“Utah proves what’s possible when people are empowered to build,” said Gov. Spencer J. Cox. “This ranking reflects what happens when we trust Utahns to lead, solve problems and shape their own future. By keeping government limited and focused on the essentials, we’ve created the freedom and opportunity for prosperity to take root and grow.”

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State officials credit the ranking to a combination of fiscal policies and long-term planning. According to Senate President J. Stuart Adams, “Utah’s consistent top ranking is a testament to the principles that have guided our state for nearly two decades—low taxes, responsible spending and policies that foster innovation and opportunity. But this isn’t just about rankings; it’s real people and real opportunities. A thriving economy means more jobs, better wages and a higher quality of life for all Utahns.”

Utah has also received high marks in other national rankings, including No. 1 overall state, No. 1 in GDP growth rate (4.5%), No. 1 in social mobility, and second best in education outcomes. These rankings, supporters argue, reflect the broader impact of the state’s economic policies.

“For 18 consecutive years, Utah has led the nation in economic outlook—and that’s no accident,” said House Speaker Mike Schultz. “It’s the result of steady leadership, smart policy, and a long-term vision for prosperity. A generation of Utahns has grown up in a state defined by opportunity. Our continued success proves that when you focus on the fundamentals—low taxes, responsible spending and family-friendly and business-friendly policies—you don’t just create a strong economy, you build strong communities. And we’re not done yet. Utah’s best days are still ahead.”

The report’s authors emphasize that continued policy innovation is key to maintaining a competitive edge. “Over 18 years, we’ve seen states fall behind by standing still,” said Jonathan Williams. “The states that rest on their laurels and don’t continue to make their policy environment more competitive have not held on to their positions. This has not been the case in Utah, where leaders have continued to find improvements, and the state has remained at the top of our economic outlook rankings.”

Utah’s focus on economic development has included investments in areas such as infrastructure, education, workforce training, energy, and water resources. Supporters say these priorities have contributed to sustained growth and stability despite national economic challenges.

The “Rich States, Poor States” index is intended as a resource for lawmakers and stakeholders interested in the economic impact of public policy. While some praise its rankings as indicators of smart governance, others note that different measures and methodologies can yield varied results when evaluating overall economic health.