(Des Moines, IA) -- Iowa's economy grew in 2025, despite population decreases and an increasing need for more health care providers.
Iowa's Gross State Product increased by 4 percent, to nearly $265 billion, according to the 2026 Competitive Dashboard report released by the Iowa Business Council.
"The fact that the ag economy has been down as of late, particularly when you think about tariffs and the lack of trade deals around the world, it has a big impact on our economy. So the fact that we grew is really important," said Joe Murphy, President of the Iowa Business Council.
The report also indicates a need to do more to prevent people from moving out of state. Murphy said the state can grow its population by retaining our high school, community college and university graduates. He also says a new federal immigration policy is needed so the state can be welcoming to people from other countries.
The Dashboard report also points to the need to recruit more health care providers, especially to rural areas and to modernize the state tax system to promote higher wages and more jobs.