This year, Iowa’s economy continued to decline. In 2025, the federal government ranked Iowa’s economy 49th in the nation, and the Trump administration ranked Iowa’s personal income growth 48th in the nation. As prices skyrocket across the nation on everything from groceries to utility costs to housing, Iowans are getting hit even harder, with less money in their pockets to cover higher costs.
A decade of one-party control has left Iowa’s economy in freefall and Iowans behind. These failing grades are not sustainable for Iowa’s future, and Iowans are ready for change.
Take a look at Iowa’s “2025 Report Card” — and why we can’t afford more of the same next year:
IOWA’S ECONOMY: F
After a decade of decline, nowhere is the damage clearer than in our economy. Families are feeling it in their pocketbooks, businesses are feeling it in their returns, and now the data confirms it.
- A recent analysis from Moody’s Analytics has labeled Iowa as one of 22 states either in or at high risk of a recession — a warning sign that the state’s economy is under serious strain.
- Iowa currently ranks 48th in the nation for personal income growth.
- Iowa has the worst state economy in the country, according to a WalletHub report that looked at economic activity, overall health, and innovation potential.
- Business competitiveness slipping: CNBC’s 2025 “Top States for Business” report shows Iowa dropping 14 spots in business friendliness, falling from 33rd to 39th in overall economic ranking, and from 27th to 41st in workforce ranking.
- Shrinking GDP: A report published by The Bureau of Economic Analysis found that Iowa’s real gross domestic product fell 6.1% in the first quarter of 2025, the steepest decline in the nation.
- Middle of the pack for the Middle Class: Iowa went from #1 in 2018 to #15 in 2025, a drop of 14 spots, based on mortgage costs, college tuition, median income, and homeownership rates.
