Maryland Has The Second-Worst State Economy, Says CNBC — Here’s Why

ANNAPOLIS, Md. — On July 13, CNBC released an article ranking the 10 worst economies in America and placed Maryland in the second spot, with only Rhode Island trailing behind it. Factors like fiscal health, economic growth, job growth and noteworthy companies within the state were the primary factors in each ranking, but in Maryland, the problems are more specific. Here’s what you should know about Maryland’s economy in 2026.

Why Was Maryland Ranked So Low?

Maryland’s excerpt in the CNBC article begins by explaining that there was very little economic growth in Maryland in recent years, which CNBC said was heavily impacted by federal government firings. According to CNBC, since 2025, the federal government has fired more than 25,000 Maryland employees, a development the outlet said has significantly impacted the economy and residents throughout the state.

According to CNBC, the real GDP for Maryland in 2025 was $437.17 billion, up 0.7%. Statistics like these help analysts understand how Maryland’s economy is doing on a surface level, but the problems can be broken down even further into a handful of specific issues.

CNBC lists three major corporations in Maryland, including Marriott International, McCormick and Company, and Lockheed Martin. According to CNBC, the problems run deeper than a lack of major names, as high costs and taxes add significant tension to everyday life in Maryland.

Increased regulation also adds to the problem, according to the Maryland Chamber of Commerce: “While other states improve tax structures, streamline regulations and attract investment, Maryland is falling behind.”

Based on CNBC’s findings, Maryland’s economy could benefit from new steps to make investment in the Old Line State easier and more cost-effective for both residents and corporations alike.

Where Does Maryland’s Economy Rank Compared To Other States?

CNBC lists Maryland’s economy score as 143 out of 415, a stark difference from states with top economies like North Carolina, which boasts a score of 317. These figures offer a quick understanding of CNBC’s assessment of the extent to which Maryland’s economy is struggling, along with why the outlet suggests the state may need to change course to attract more investors and businesses to the area.

Maryland isn’t the only Eastern state to receive a low ranking from CNBC. Rhode Island earned the first spot on its “worst economies” list, while landlocked West Virginia came in third. On the flip side, North Carolina, Texas and California have the three strongest economies, according to CNBC’s latest ranking.

Every state goes through rough patches, and CNBC offers its assessment of some of the reasons Maryland is struggling in 2026. To learn more, visit CNBC.com.

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