Arizona is a state in the southwestern region of the United States. It is also part of the Western and the Mountain states. It is the 6th largest and the 14th most populous of the 50 states. Its capital and largest city is Phoenix. Arizona shares the Four Corners region with Utah, Colorado, and New Mexico; its other neighboring states are Nevada and California to the west and the Mexican states of Sonora and Baja California to the south and southwest.
The Arizona economy continues to heat up. Arizona has consistently ranked among the fastest growing states over the past two years, with the latest data placing it in the top ten for employment, population and real GDP growth. Arizona’s success has come against a backdrop of stronger national economic growth, as robust consumer spending, fiscal stimulus and solid gains in business fixed investment contributed to 2.9% real GDP growth nationwide in 2018. We anticipate a more moderate outcome in 2019 as some of the fiscal stimulus fades, but look for real GDP to expand at a still-solid 2.5% pace. That more modest pace for the nation will put a lower ceiling on economic growth in Arizona, but the Grand Canyon State should remain near the head of the pack, as job growth and in-migration remain strong.