Florida TaxWatch released current statistics on the state’s economy and economic conditions in the coming years.
TaxWatch predicts that the state’s economy will return to pre-pandemic growth rates over the next five years after posting strong economic growth over the past three years.
Florida’s economic outlook for this year shows growth, but at a slower pace. Part of that is due to uncertainty in the U.S. economy, and consumer confidence has fallen significantly.
Employment in the state is expected to grow throughout this year, but could start to slow in 2027.
Florida’s population is projected to grow by about 2.6 million people over the next few years as people move to the state, rising from 23.4 million to 26 million by 2035.
The number of people leaving the state has skyrocketed. This is primarily due to rising affordability costs, including higher property taxes, higher real estate and auto insurance, and higher housing costs.
Which states are people moving from Florida to? Tennessee, Texas, Georgia, North Carolina. But TaxWatch analysts say that despite these concerns, Florida is likely to remain one of the fastest-growing states.
Florida’s growth rate is projected to be approximately 2.7% in 2026 and is expected to decline to 1.9% by 2035. TaxWatch expects inflation to decline slightly over the next few years, but this could change significantly due to changes in interest rates.
Tourism: In 2024, the number of visitors to Florida reached a record high, totaling more than 142.9 million people and spending $134.9 billion. Florida’s successful tourism industry supports 1.8 million jobs and generates $79.9 billion in employee wages.
The dollars generated by tourism revenue save each Florida household $1,730 a year in state and local taxes.
However, tourism may slow down this year. Analysts expect growth to be 0.5%.
TaxWatch notes that the growth rate of visitor numbers is expected to increase until 2027 and then stabilize at a high level.
