Pa. is the only northeast state with a growing economy: report

Gov. Josh Shapiro has two new feathers to pin on his hat: A new report finds that Pennsylvania is the only northeast state with a growing economy.

That new finding comes on the heels of Pennsylvania emerging as the only northeast state to place in the top 20 “Best States for Business” this year.

The findings on Pennsylvania’s geographically robust economy come from Axios, which on Friday published an analysis by Moody’s Analytics that found the Commonwealth is one of just 16 states nationwide where the economy continues to expand despite national headwinds.

The analysis — led by Moody chief economist Mark Zandi — examined state-level jobs data, industrial production, personal income, and housing starts.

Twenty-two states are either in a recession or on the precipice of a downturn, the Moody’s report shows. The problems of those states are driven largely by a mix of slowing immigration, increasing tariffs and federal job cuts, Zandi argues.

He finds that the immigration crackdown is suppressing growth.

“State-level data makes it clear why the U.S. economy is on the edge of recession,” Zandi wrote in an X post.

Pennsylvania ranked among the third cadre of states with growing economies. The report found that California and New York, which together account for over a fifth of U.S. GDP, are holding their own. Their stability is crucial for the national economy.

The Shapiro administration is touting the recognition as “growing evidence” that Pennsylvania’s economy is strong, competitive, and growing.

“Since taking office, Governor Shapiro has made Pennsylvania more competitive — launching the Commonwealth’s first economic development strategy in nearly two decades — and by cutting red tape, streamlining permitting and licensing, and making strategic investments that have attracted over $25.6 billion in private-sector investment, created more than 12,500 good-paying jobs, and expanded opportunity across the Commonwealth,” the administration said in a press release Friday.

Last week, Area Development ranked Pennsylvania among the top 20 “Best States for Business” — the only Northeastern state to make the list — and placed the Commonwealth in the top 10 for “Site Readiness Programs.”

This includes the largest private-sector investment in Commonwealth history: Amazon’s initial $20 billion investment to build new AI and cloud computing campuses that will create thousands of high-tech and construction jobs.

The accolades for the Commonwealth under Shapiro’s leadership come at a time when polls consistently show favorable public opinion of the Democratic governor.

A new Franklin & Marshall College poll shows Shapiro’s approval rating besting that of President Donald Trump — with a 10-point advantage.

F&M’s poll found that Shapiro continues to be comparatively popular, with 51% of those surveyed rating his performance “good” or “excellent.” Only 41% of those voters thought the same of Trump.

A Quinnipiac poll earlier this month found that Shapiro continues to enjoy broad-based approval, with 60% of poll respondents saying they approve of how he’s handling his job.

That includes 93% of registered Democrats, along with 28% of Republicans, as well as 66% of independents who view Shapiro’s job performance favorably.

Shapiro in recent months has been criss-crossing the state to announce or roll out one business or economic initiative after the next.

On Thursday, the governor was in Lackawanna County to announce $39 million and more on 11 projects that will transform land riddled with abandoned coal mines into areas ready for data center development.

The so-called PA SITES (Pennsylvania Strategic Investments to Enhance Sites) have directed $114 million in funding for 29 projects statewide that will transform underused land into shovel-ready business sites.

“Lackawanna County is on the brink of growth in various areas, and we are excited to embrace this opportunity to help our communities thrive and keep our residents employed in family-sustaining jobs,” Kristin Magnotta, director of the Lackawanna County Department of Planning and Economic Development, said in a statement.

The Lackawanna project calls for the reclamation of old coal mine-scarred lands into viable sites for power-intensive data centers.

The race to make Pennsylvania attractive to Big Tech and data centers, however, has garnered plenty of scrutiny, with questions on whether AI and cloud computing will be an economic boon for parts of the Keystone state – or another boom and bust.

Some analysts warn that the impressive job numbers forecast with high tech jobs “can lead to massive exaggerations” on the number of permanent jobs created by these capital-intensive projects.

If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.