Alabama Economy

According to the United States Bureau of Economic Analysis, the 2005 total gross state product was $151 billion. This is an increase of 4.5% over 2004 and ranks Alabama number 15 in terms of state level GDP growth. The single largest increase came in the area of durable goods manufacturing.[23] In 1999, per capita income for the state was $18,189.[24] Alabama's agricultural outputs include poultry and eggs, cattle, plant nursery items, peanuts, cotton, grains such as corn and sorghum, vegetables, milk, soybeans, and peaches. Although known as "The Cotton State", Alabama ranks between eight and ten in national cotton production, according to various reports,[25][26] with Texas, Georgia and Mississippi comprising the top three. Alabama's industrial outputs include iron and steel products (including cast-iron and steel pipe); paper, lumber, and wood products; mining (mostly coal); plastic products; cars and trucks; and apparel. Also, Alabama produces aerospace and electronic products, mostly in the Huntsville area, which is home of the NASA George C. Marshall Space Flight Center and the US Army Missile Command, headquartered at Redstone Arsenal.

Alabama is also home to the largest industrial growth corridor in the nation, including the surrounding states of Tennessee, Mississippi, Florida, and Georgia. Most of this growth is due to Alabama's rapidly expanding automotive manufacturing industry which in Alabama alone since its birth in 1993 (and has spread to other states), has generated over 67,800 new jobs. Alabama currently ranks 2nd in the nation behind Detroit, Michigan in automobile output, but with recent expansions at sites in Alabama, the state by the first of 2009 will surpass Detroit, and become the largest builder of automobiles in North America. In May, 2007, a site north of Mobile was selected by German steelmaker ThyssenKrupp for a $3.7 billion steel production plant. 2,700 permanent jobs will be produced by the new plant.[27] Mobile is the only saltwater port in Alabama.

Also, the city of Mobile is a busy seaport on the Gulf of Mexico, and with inland waterway access to the Midwest via the Tennessee-Tombigbee Waterway. Alabama levies a 2, 4, or 5% personal income tax, depending upon the amount earned and filing status. The state's general sales tax rate is 4%.[28] The collection rate could be substantially higher, depending upon additional city and county sales taxes. The corporate income tax rate is currently 6.5%. The overall federal, state and local tax burden in Alabama ranks the state as the second least taxed burdened state in the country.[29]

Alabama as recently as 2003 had an annual budget deficit as high as $670 million, yet is one of only a few handful of states to turn around into large surpluses with its current state's budget surplus at nearly $1.2 Billion for fiscal year 2007, and estimated over $2.1 Billion for fiscal year 2008.

Alabama's quarter depicting famous resident Helen Keller along with the longleaf pine branch and Camellia blossoms from the 50 State Quarters program. Released March 19, 2003.