What Are The Biggest Industries In New Mexico?
Thursday, March 05, 2020
New Mexico is historically a mining and ranching state, but natural resources still contribute significantly to the GDP. Energy, aerospace and defense, logistics and transportation, tourism, food, etc., are some of the state's biggest industries.
A Breif Overview Of The Economy Of New Mexico
Although the mining sector has scaled down on employees, the gas and oil industry of New Mexico contribute over $2 billion in revenues and taxes annually. New Mexico produces the most potash in the United States and holds significant deposits of uranium. The state is on a path to recovery since the economic recession of 2007. In the decade between 2007 and 2017, the GDP rose by about 20%. As of 2019, government and related services was the largest industry, accounting for about 23% of the GDP, which was 1.7% lower compared to the decade before. Finance, insurance, real estate, leasing, and rental jointly account for about 17%. Mining, gas and oil extraction, and quarrying are the largest contributors to the growth of real GDP in New Mexico. The federal government employs about 29,500 people, while the private sector employs about 650,000. New Mexico provides incentives to companies and organizations operating within the state, including tax exemptions and tax credits. Most incentives are awarded based on employment opportunities. State laws allow the state government to provide specialized infrastructure, buildings, and land to companies operating in the state to support job creation.