Report Shows Maryland Trailing Region in Economic Outlook

Maryland’s declining economic rankings indicate deeper challenges that could impact jobs, local revenues, and long-term growth throughout the state.

According to the Maryland Chamber of Commerce, Maryland’s latest national economic rankings indicate that the state is continuing to fall behind its neighbors, raising concerns about long-term growth and fiscal stability. These rankings, released by the American Legislative Exchange Council, highlight long-standing challenges tied to high business costs, regulatory hurdles, and a lack of pro-growth policies.

From the MD Chamber blog:

Maryland ranks last among neighboring states in Economic Outlook (42nd), behind Virginia (32nd), Pennsylvania (36th), Delaware (38th), and West Virginia (16th). Economic Performance is near the bottom (41st), while Delaware (17th) and Virginia (26th) are gaining momentum.

When businesses and residents relocate to other states, counties experience slower job growth, weaker revenue streams, and greater pressure on services. Sluggish economic activity also limits the resources available to invest in infrastructure, education, and public health at the local level.

Maryland continues to have strong assets, including a skilled workforce and strategic location, but maintaining competitiveness will require coordinated action. Leveraging incentives such as Enterprise Zones and Opportunity Zones is a crucial tool for counties in attracting investment, retaining employers, and strengthening fiscal resilience.

Read the full article.

At the 2025 MACo Winter Conference Economic Development session, “Incentives That Work: A Modern Toolkit for County Economic Development ,” panelists will offer practical strategies for leveraging state and federal incentives to drive growth.

The 2025 MACo Winter Conference will be held at the Hyatt Regency Chesapeake Bay Hotel in Cambridge, MD, from December 10-12, 2025. This year’s theme is “Local Leadership, Lasting Impact: Shaping What’s Next.” More information can be found on our conference website.