Posted 28 March, 2025
The Iowa Business Council (IBC) released its annual, nonpartisan review of the state’s economic competitiveness. Known as Iowa’s Competitive Dashboard, the report measures the state’s national rankings in five categories: economic growth; workforce & education; governance; health & wellness; and state demographics. For each category, Iowa is awarded a cumulative score that determines whether it is outperforming, competitive, or underperforming. The report can be measured consistently across all 50 states, providing an accurate depiction of how Iowa is competing nationally.
Among the key findings of the report, Iowa’s overall standing in the face of national and international uncertainty remains strong. Under the Economic Growth category, Iowa’s Gross State Product (GSP) increased by more than 6.5% to $254 billion compared to last year’s report. Noting Iowa’s strong standing in manufacturing value as a percentage of its GSP, Iowa is well diversified across multiple industries which highlights the state’s continued economic resiliency.
Iowa’s economy is poised for even more growth with significant increases in competitiveness relative to its tax climate. Iowa’s state ranking for Corporate Tax Climate have improved from 46th in 2010, to 23rd in 2024. For the Individual Tax Climate, Iowa’s standing has improved from 41st to 19th in the same timeframe.
The report also calls out opportunities for growth and improvement. Specifically, metrics contained within the State Demographics category should be highlighted for Iowa policymakers. Iowa’s population has grown at a far slower rate than the rest of the country. The growth of Iowa’s population must be accelerated in both urban and rural communities to ensure continued economic vitality for the state. Recruitment and retention efforts could be bolstered by changes in federal immigration policy, as well as highlighting the significant advantages Iowa provides its citizens over other states including safe communities, high quality K-12 educational systems, low cost of living, and affordable housing.
“The IBC will continue to support policy initiatives that increase economic opportunity for every Iowan while increasing our competitiveness across every Dashboard metric,” stated Joe Murphy, IBC president.
The dashboard, which has been released annually since 2011, serves as a tool for policymakers and business leaders to use when making sound economic decisions. IBC members encourage community leaders to join in implementing the report’s recommendations, or use the data to develop their own action items. Over the course of the next several months, the IBC will present the report’s findings throughout the state.
To view the full report, visit here.