Recent analysis shows Iowa's economic situation might be able to withstand this downturn better than other states.
States are taking a big economic hit due to the coronavirus pandemic. In a Cedar Rapids Gazette article, Jeff Robinson, a senior tax analyst at Iowa's Legislative Services Agency, indicated we might have to wait until all taxes have been collected and refunds paid to know the real impact on government budgets.
However, a recent analysis by WalletHub shows Iowa's economic situation might be able to withstand this downturn better than other states.
Their study compared all 50 states and the District of Columbia across highly impacted industries and workforce along with the resources for businesses to cope with the crisis. Overall, Iowa is ranked as the 38th most exposed (14th best) to the pandemic's economic consequences.
The top five most exposed states are Louisiana, Rhode Island, Nevada, Maine, and New Hampshire. Georgia is the least exposed state followed by California, Alaska, Oregon, and Utah.
Iowa's high impact industries and workforce are ranked as the 6th most prepared at number 46. The state's resources to help businesses came in a little below average at number 20.
Two areas where Iowa is the strongest are the amount of employment and GDP generated from highly impacted industries.
The analysis also took into consideration each state's:
- Rainy day funds
- Fiscal condition
- Work from home infrastructure
- Preparation for a digital economy
- Increase in 12th-week unemployment claims (2020 vs. 2019)
- Share of employment from small business
Read more about how Iowa ranks on the WalletHub website.