Economy of Alaska

By | March 4, 2023

Alaska is the largest state in the United States, but it has a relatively small population. As such, its economy is largely driven by natural resources, tourism, and military spending.

Alaska’s natural resources are its greatest economic asset. Oil production is the largest industry in Alaska and accounts for nearly 10 percent of all US crude oil production. In addition to oil, Alaska produces large amounts of seafood such as salmon and crab, as well as timber and minerals like gold and silver. The state also has large deposits of natural gas and coal which are used for energy production.

Tourism is another major contributor to Alaska’s economy. The state attracts millions of visitors each year who come to explore its vast wilderness areas, view wildlife, and experience the unique culture of Native Alaskans. Tourism also provides jobs in the hospitality industry such as hotels, restaurants, transportation services, and tour guides.

The US military has a strong presence in Alaska with many bases located throughout the state. This brings substantial economic benefits to the local economy through job creation and procurement contracts with local businesses for goods and services. Military spending also helps stimulate Alaska’s economy by providing a stable source of income for many families living in rural areas that may otherwise be unable to find employment opportunities elsewhere due to their remote location or lack of education or training opportunities.

The government plays an important role in Alaska’s economy due to its large size relative to its population size – it is one of only two states with no personal income tax or sales tax (the other being New Hampshire). This means that government spending makes up a significant portion of total spending within the state’s borders – approximately 35 percent according to some estimates – which helps support public services such as healthcare and education for Alaskans across all income levels.

Finally, small business owners play an important role in driving economic growth throughout the state by providing jobs and contributing taxes that help fund local infrastructure projects like roads, bridges, schools etc., while also supporting innovation through entrepreneurship initiatives like incubators or venture capital funds that help entrepreneurs launch new businesses or products within the state’s borders.

In summary, Alaska’s economy is driven primarily by natural resources like oil production; tourism; military spending; government spending; small business owners; and entrepreneurs who are launching innovative new products or services throughout the region that contribute significantly towards economic growth within this unique northernmost US state.

Top 3 Counties in Alaska

According to, main counties in Alaska include:

1. Anchorage County: Anchorage County is the most populous county in Alaska, and home to nearly half of the state’s population. It is located in southcentral Alaska and is bordered by the Chugach Mountains to the east and Cook Inlet to the west. Anchorage County is known for its diverse landscape, with mountains, glaciers, rivers, lakes, and forests all within its boundaries. The city of Anchorage is its largest city and economic hub. It has a thriving economy based on oil and gas production, tourism, fisheries, shipping, aviation, technology and financial services. Some of the popular attractions in Anchorage include the Alaska Zoo, Alaska Wildlife Conservation Center, Chugach State Park and Tony Knowles Coastal Trail.

2. Fairbanks North Star Borough: Fairbanks North Star Borough is located in Interior Alaska and encompasses an area of over 7 million acres (2 million hectares). It is home to just over 100 thousand people spread out over nearly 19 thousand square miles (50 thousand sq km). The borough includes both urbanized areas like Fairbanks as well as rural villages such as Fort Yukon along with vast wilderness areas like Denali National Park & Preserve. The borough’s economy is based largely on oil & gas extraction as well as military installations at Fort Wainwright & Eielson Air Force Base. Additionally it has a vibrant tourism industry due to its proximity to Denali National Park & Preserve which attracts visitors from all over the world who come for a chance to see wildlife including bears & wolves or take part in outdoor activities such as cross-country skiing or dog sledding.

3. Matanuska-Susitna Borough: Matanuska-Susitna Borough (also known simply as “MatSu”) covers an area of 25 thousand square miles (65 thousand sq km) making it one of the largest counties in Alaska by land area but it only has a population of around 100 thousand people which makes it one of the least densely populated counties in the state. MatSu lies just north of Anchorage County but its landscape consists mostly of forested mountain ranges with some open valleys between them allowing for farming or ranching activities along with some small towns scattered throughout including Palmer & Wasilla which are both home to museums & other attractions related to local history & culture such as Iditarod Trail Sled Dog Race Museum or Pioneer Air Museum respectively. Additionally there are several natural attractions worth visiting such as Eklutna Lake or Denali State Park near Talkeetna among many others making it an ideal destination for outdoor enthusiasts looking for adventure away from more populated areas like Anchorage or Fair.

Economy of Alaska