PHOENIX — Arizona’s economy remained strong at the end of last year, but the Trump administration’s policies are creating uncertainties, according to local business leaders.
The Greater Phoenix Chamber released its latest Arizona Economic Insights Dashboard findings, which showed the state rolled in more than $500 billion in Gross Domestic Product (GDP) last year.
The dashboard is composed of data on Arizona’s unemployment, income, real estate and more.
What’s in store for the future of Arizona economy?
Todd Sanders, the chamber’s president and CEO, said the state’s economy continues to grow and entered 2025 heading in a positive direction.
“Inflation remained low or it continued to go lower, job openings increased. Unemployment here was lower than the rest of the country,” Sanders told KTAR News 92.3 FM’s Arizona’s Morning News on Tuesday.
The health care, construction, IT, cyber and semiconductor industries are helping Arizona’s economy get ahead, according to Sanders.
Earlier this year, Taiwan Semiconductor Manufacturing Co. (TSMC) announced it was pouring an additional $100 billion into its Arizona operations.
Could Trump policies affect Arizona economy?
However, President Donald Trump’s economic policies have created a lot of uncertainty in the market, which is causing businesses to pull back from spending, Sanders said.
“Consistency is really what businesses need to make big decisions,” he said.
Trump’s trade war with China could affect Arizona down the road. Certain machine parts continue to be made in China, so high tariffs could increase the cost of manufacturing here in the state, Sanders said.
“At the end of the day, what that could cause here is lost opportunity for Arizona companies that are looking to ship or sell overseas in China, but it also could mean higher prices for us here at home,” Sanders said.
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