Saudi Press

Saudi Arabia and the world
Monday, Sep 15, 2025

New York's economy is America's worst

New York's economy is America's worst

The US economy is inching back to normal. But the recovery remains uneven and some states are lagging behind in the race to get back to pre-pandemic strength - especially New York.

Although several states' economies have already fully recovered — and are even outpacing — their pre-Covid levels of economic activity, New York is by far the worst-performing state, according to the Back-to-Normal Index created by CNN Business and Moody's Analytics.

The index shows that the US economy as a whole was 93% back to normal as of June 18. But New York was only at 83%, leaving it with the furthest to go to get back into pre-Covid shape.

New York isn't the only state below the 90% mark, though it is at the bottom of the list.

How bad is the Empire State compared to the other 49 states?


In 2019, before Covid hit, New York had the third-strongest economy among US states, lagging only Texas and California. The state's gross domestic product — the broadest measure of economic activity — was nearly $1.8 trillion, on par with the GDP of Italy. More than $1 trillion of that came from economic activity in New York City. The state contributed more than 8% to America's overall GDP that year.

In 2020, New York's GDP dropped to $1.7 trillion. That might not sound like a big difference, but we're dealing in trillions of dollars here. When states that are economic powerhouses underperform, it's not great for the recovery of the entire nation.

New York's GDP contracted by 5.9% last year, a bigger decline than the total US GDP suffered, putting it at No. 47 out of all 50 states for economic growth.

The jobs situation looks even worse. At 7.8% unemployment, New York has one of the highest jobless rates in the nation. US unemployment as a whole stood at 6.1% in April and fell to 5.8% in May.

Why New York lags behind


The biggest factor is the scope of the economic destruction New York City suffered during the height of the pandemic, when it was the epicenter of the outbreak. This led to more severe lockdown protocols than in many other parts of the country.

On top of that, the New York City economy is heavily reliant on service-driven industries. But offices are still mostly empty, and only some workers are commuting. That's bad news for the coffee shops, dry cleaners and lunch spots that support the office infrastructure.

"More specific to New York City is also business travel and tourism that has just stopped," said Moody's Analytics' economist Matt Colyer. It's unclear when those travelers will return.

And the challenges don't end there: One of the components of the Back-to-Normal Index that holds New York back the most is the shortage of restaurant-goers, according to Colyer. The state is still 40% below its pre-pandemic, eat-in diner volume, while the nation as a whole is down only 13%.

"I think with New York lifting its restrictions last week, I would expect for some of that gap to close," Colyer told CNN Business.

The state has been more cautious than most in lifting restrictions to avoid new flare ups of the virus. But the scarring economic effect will be a factor for a while.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Kuwait opens bidding for construction of three cities to ease housing crunch.
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
Could AI Nursing Robots Help Healthcare Staffing Shortages?
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Did the Houthis disrupt the internet in the Middle East? Submarine cables cut in the Red Sea
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Tether Expands into Gold Sector with Profit-Driven Diversification
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
Israeli Airstrike in Yemen Kills Houthi Prime Minister
After the Shock of Defeat, Iranians Yearn for Change
YouTube Altered Content by Artificial Intelligence – Without Permission
Iran Faces Escalating Water Crisis as Protests Spread
More Than Half a Million Evacuated as Typhoon Kajiki Heads for Vietnam
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Nine people have been hospitalized and dozens of salmonella cases have been reported after an outbreak of infections linked to certain brands of pistachios and pistachio-containing products, according to the Public Health Agency of Canada
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
Tariffs, AI, and the Shifting U.S. Macro Landscape: Navigating a New Economic Regime
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
×