Ever wondered what actually powers Arkansasās economy? While agriculture is often the stateās signature industry, it turns out the economic engine is far more diversifiedāand a lot bigger than many realize.
According to the latest 2024 figures, Arkansasās real Gross Domestic Product (GDP) was $148.2 billion, ranking 36th among U.S. states in total GDP. However, the state's economic momentum is noteworthy: Arkansas led the nation in GDP growth during the fourth quarter of 2024, with a 5.1% increase, marking the second consecutive quarter it held the top spot in GDP growth.Ā
Despite this growth, Arkansas's GDP per capita was $59,663, placing it 46th among the 50 states.
Hereās a sector-by-sector breakdown of where that money comes from:
| Industry Sector | GDP Contribution | % of Total GDP |
|---|---|---|
| Manufacturing | $21.9B | 14.8% |
| Professional & Business Services | $20.2B | 13.6% |
| Government | $16.9B | 11.4% |
| Health Care & Social Assistance | $16.2B | 10.9% |
| Finance, Insurance, Real Estate, Rental & Leasing | $15.3B | 10.3% |
| Wholesale Trade | $14.1B | 9.5% |
| Retail Trade | $14.1B | 9.5% |
| Transportation & Warehousing | $8.5B | 5.7% |
| Construction | $7.3B | 4.9% |
| Arts, Entertainment, Recreation, Accommodation & Food | $6.8B | 4.6% |
| Utilities | $4.8B | 3.2% |
| Other Services (except Government) | $4.4B | 3.0% |
| Information | $3.6B | 2.4% |
| Agriculture, Forestry, Fishing, and Hunting | $2.9B | 2.0% |
| Educational Services | $1.1B | 0.7% |
| Mining, Quarrying, Oil & Gas Extraction | $0.7B | 0.5% |
| TOTAL | $148.2B | 100% |
Note: Percentages are rounded to the nearest tenth.
Manufacturing remains Arkansasās top economic contributor, but professional services and finance are close behind.
Health care accounts for more than 1 in 10 GDP dollarsāunderscoring its importance not just for public well-being, but as an economic driver.
Agriculture, while iconic, contributes just 2% of the total economy directly (not counting secondary effects).
Arts, tourism, and entertainment now account for nearly 5%, reflecting growing investment in Arkansasās cultural and outdoor assets.
Despite ranking 46th in GDP per capita, Arkansas's recent GDP growth indicates a rapidly expanding economy.
As Arkansas continues to diversify and grow, expect continued shifts in which sectors dominate the economic landscapeāespecially with new investments in logistics, broadband, and advanced manufacturing.