Rhode Island ranks last in CNBC state economy study for 2026

Rhode Island received the weakest economy score in CNBC’s 2026 America’s Top States for Business study, with 121 points out of 415, while Maryland and West Virginia also earned failing grades. The rankings highlight fiscal, trade and labor-market risks that companies may weigh when choosing where to invest or expand.

CNBC said the economy category accounts for 16.6% of a state’s total score this year, the second-largest weight in the study after infrastructure. The network said it evaluates job growth, economic growth, headquarters of major companies, fiscal condition, debt ratings, housing-market health, exposure to tariffs, possible federal budget cuts and small-business survival.

The study comes as recession fears have eased, according to CNBC, but companies remain alert to inflation, geopolitical risk and concerns about artificial intelligence valuations. State development agencies have responded by emphasizing economic stability in their pitches to employers.

The weakest performers

Rhode Island placed last. CNBC said the state had the ninth-weakest economic growth in the country last year, little foreign direct investment and few new business formations. Its real GDP was $64.2 billion in 2025, up 1.1%, and international goods trade equaled 18.5% of GDP. Moody’s rated the state Aa2 with a stable outlook.

Maryland ranked second from the bottom with 143 points. CNBC said both economic growth and job growth were nearly flat over the past year. Gov. Wes Moore said in February that the federal government had cut about 25,000 federal jobs held by Marylanders, which he described as the largest such reduction for any state. The Maryland Chamber of Commerce also cited high costs, tax uncertainty and regulatory burdens. Maryland’s 2025 real GDP was $436.17 billion, up 0.7%.

West Virginia ranked third from the bottom with 146 points. CNBC said the state has struggled to move beyond its coal-centered economy, with the lowest labor-force participation rate in the country, according to Federal Reserve data cited in the report. Its 2025 real GDP was $83.2 billion, up 0.5%. CNBC identified housing as a relative support, citing near-optimal inventory, affordability and price appreciation.

Federal reliance, tariffs and weak formation

Louisiana ranked fourth from the bottom, scoring 160 points. CNBC said the state faces exposure to tariffs and federal spending risk, with 48.6% of state spending funded by Washington, the highest share in the country. International goods trade totaled $109.4 billion, or 32.2% of GDP. Louisiana State University’s E.J. Ourso College of Business forecast further job growth, but said only four metro areas were expected to grow employment by at least 1%.

Kansas placed fifth from the bottom with 162 points. CNBC cited a subdued housing market despite tight supply, using data from Redfin and ATTOM Data Solutions, and said Lightcast data showed the state has had difficulty attracting workers. South Dakota followed with 168 points, despite an Aaa Moody’s rating and relatively strong small-business survival, according to Construction Coverage.

Alaska scored 169 points. CNBC said more than 45% of state spending comes from federal funds, while the Trump administration’s support for North Slope drilling and an 807-mile natural gas pipeline remains a potential longer-term boost. State economist Karinne Wiebold wrote in January that aligned state and federal leadership could support mining and energy development, though CNBC noted the pipeline is years away.

• New Hampshire ranked eighth from the bottom with 170 points, with CNBC citing weak job growth, low new-business survival and more than $5.5 billion in unfunded public employee retirement obligations.
• North Dakota scored 171 points after posting the nation’s lowest economic growth last year, though Pew Charitable Trusts data showed the state holds substantial reserves.
• Oklahoma scored 172 points. The National Association of State Budget Officers said 40.4% of its state spending comes from federal funds, leaving it exposed to possible cuts.

This story draws on original reporting from CNBC.