Rhode Island’s Economic Performance and Public Sentiment Decline

Categories: Rhode Island Business NewsRhode Island News

An urban view depicting the economic landscape of Rhode Island.

News Summary

Rhode Island ranks 33rd in the WalletHub economic performance rankings, reflecting a decline from previous years. While there are signs of improvement in overall economic conditions, public sentiment towards Governor Dan McKee worsens, as many residents feel financially worse off than before. Additionally, concerns over inflation persist, with mixed perceptions of job opportunities and investment climates. Despite upward adjustments in state revenue projections, fiscal leaders advise caution amid national economic uncertainties.

Rhode Island has been ranked 33rd in the latest WalletHub economic performance rankings, which evaluates states based on 28 critical indicators such as GDP changes, startup activity, and job shares in high-tech industries. Maine was ranked just below Rhode Island at 37th, while Massachusetts secured the top position as the state with the best economy, illustrating a significant disparity between its performance and that of Rhode Island.

Despite Rhode Island’s ranking falling from 28th to 33rd, other reports indicate signs of improvement in its economic conditions. Data from U.S. News & World Report shows that Rhode Island climbed from 28th to 16th in overall economic rankings between 2021 and 2025. In the recent “Best States for 2025” rankings, Rhode Island is positioned 24th, marking a commendable 10-spot increase since Governor Dan McKee took office in 2021.

Even as rankings appear to show a positive trajectory, the public’s perception of Governor McKee has worsened. His job approval rating has dipped to 19%, a decline of 10 points from the previous year. A recent survey conducted by the University of New Hampshire revealed that only 15% of Rhode Islanders believe they are better off financially now than they were in 2024, while 45% feel worse off. Additionally, an overwhelming 87% of those polled expressed concerns about rising prices and inflation affecting their financial situation.

The sentiment towards employment opportunities and stock market investments is also concerning. Only 19% of respondents perceive the current time as favorable for job seekers, and merely 25% believe it is a good time to invest in the stock market. Reflecting dissatisfaction with the current leadership, around 74% of participants indicated that they do not think Governor McKee should seek re-election in 2026. This sentiment is especially strong among Democrats, with 60% wishing for a new candidate to emerge, such as former CVS executive Helena Buonanno Foulkes, who remains popular among voters.

On the national political landscape, former President Donald Trump’s job approval in Rhode Island has seen a slight decline to 37%, down from 40% the previous year. The political climate and economic data paint a complex picture of life in Rhode Island.

In terms of revenue, Rhode Island’s financial outlook has seen adjustments, with state revenue collections revised upwards by nearly $80 million for both the current and next fiscal year, despite apprehensions regarding a potential national economic downturn. Projections suggest that the current year’s revenue for Rhode Island will reach $5.6 billion, exceeding earlier forecasts by $60.7 million. This increase can be attributed to rises in personal income tax and corporate tax collections.

However, not all tax lines are performing positively; the sales tax is anticipated to be $22 million below previous expectations for the current year. Looking ahead, the next fiscal year starting on July 1 is expected to yield an additional $19.3 million in revenue compared to prior estimates, totaling revenue collections of $5.7 billion.

Despite these optimistic revenue forecasts, state fiscal leaders remain cautious. They warn of uncertainties related to a potentially dwindling U.S. economy, urging a prudent approach to future budgets and fiscal planning to navigate any emerging challenges.