Florida TaxWatch just released current statistics on the state’s economy and what it may look like in the next several years.
TaxWatch predicts the state’s economy is now set to return to pre-pandemic growth rates over the next 5 years, after experiencing high economic growth in the past three years.
Florida’s economic outlook for this year shows growth, but at a slower rate. Some of this stems from economic uncertainty in the U.S., and consumer confidence is much lower.
Jobs in the state are expected to grow throughout this year, but may begin to slow down in 2027.
As people move to the state over the next several years, Florida’s population is projected to increase by about 2.6 million, rising from 23.4 million to 26 million by 2035.
There has been a jump in the number of people leaving the state. This is mostly due to higher affordability costs, like rising property taxes, rising property and automobile insurance, and rising housing costs
Which states are people moving to from Florida? Tennessee, Texas, Georgia and North Carolina. But TaxWatch analysts say, despite these concerns, Florida will likely continue to be one of the fastest-growing states.
Florida’s growth rate is predicted to be around 2.7 percent in 2026 and will drop to 1.9 percent by 2035. TaxWatch expects inflation to slightly decrease in the coming years, though this is largely subject to change due to interest rate fluctuations.
Tourism: In 2024, Florida had a record number of visitors to the state, totaling more than 142.9 million, and spending a record $134.9 billion. Florida’s tourism industry has been a success, supporting 1.8 million jobs and generating $79.9 billion in employee wages.
The dollars tourism revenue generates allow every Florida household to save $1,730 a year on state and local taxes.
But tourism may see a slowdown this year. Analysts are expecting a growth rate of 0.5 percent.
TaxWatch points out that the growth rate of visitors is projected to increase until 2027, then stabilize at an elevated level.
