Virginia

Virginia: more than just peanuts

Virginia scored 33^rd on the EPI states ranking, with the EPI score of 85.3%, or C level, in 2014. Despite moderate inflation and the below US-average unemployment rate, a high budget deficit and negative GDP growth were the main drags on the EPI score.

Agriculture is by far the largest state industry driving the economy and is very diversified. Tabaco is still a leading crop, however, it has recently been surpassed by soybeans. Aerospace is another top industry in the state with over 200 firms currently operating in Virginia that include Lockheed Martin, Boeing, and Rayethon. Food and beverage manufacturing is also prominent in this state, as large food processing companies, such as Kraft, Hershey Chololate, and MillerCoors all have major operations here.

The unemployment rate in Virginia was 5.1% in 2014, its lowest rate since 2008, and was well below the national average of 6.2%. While 20% of the state’s economy is dependent upon federal spending, continued cutbacks of this spending has resulted in a growth of jobs in the private sector. This also contributed to the state’s -2.7% GDP growth, making it one of the worst growing states in the country. The state government’s budget deficit is about 5.2%, more than one percentage point above the US average.