Economy of New Mexico

By | March 4, 2023

New Mexico is a state located in the Southwestern United States. It is bordered by Arizona to the west, Colorado to the north, Oklahoma and Texas to the east and Mexico to the south. New Mexico has a diverse and growing economy that is supported by its rich natural resources, strong tourism industry, vibrant business climate and highly educated workforce.

The primary industries in New Mexico are oil and gas extraction, mining, agriculture and ranching, manufacturing, tourism and professional services. The state’s vast natural resources have made it an important player in the energy industry. Oil and gas production account for a large portion of New Mexico’s economic activity. In addition to energy production, mining activities such as potash mining also contribute significantly to the state’s economy.

Agriculture is another important sector of New Mexico’s economy; it ranks second among all states for total agricultural production value. Cattle ranching has been an integral part of life in New Mexico since its early settlement days. Today, cattle ranching continues to be an important contributor to the state’s economy with beef cattle being one of its main products along with dairy products, cottonseed oil and hay.

Manufacturing is another key economic driver in New Mexico; it contributes nearly 10 percent of all jobs within the state’s borders. The majority of manufacturing activities are concentrated around Albuquerque where numerous aerospace companies have set up operations due to its proximity to White Sands Missile Range as well as Kirtland Air Force Base. Other notable industries include semiconductor fabrication plants located near Santa Fe as well as food processing facilities located throughout the state.

Tourism plays an important role in New Mexico’s economy; it accounts for more than 7 percent of all jobs within the state borders. Tourists are drawn from around the world for its unique culture which includes historic sites such as Chaco Canyon National Historic Park as well as recreational activities such as skiing at Taos Ski Valley or exploring Carlsbad Caverns National Park or White Sands National Monument.

Finally, professional services are also a key component of New Mexico’s economy; they contribute more than 11 percent of total employment within the state borders thanks largely due to federal government contracts related mainly with defense projects at Kirtland Air Force Base or White Sands Missile Range plus major medical centers like University Medical Center (UNM) Health System in Albuquerque or Presbyterian Hospital System in Santa Fe both providing quality healthcare services throughout their respective regions plus various scientific research facilities found primarily at Los Alamos National Laboratory located north of Santa Fe which produces nuclear weapons components for US Department Of Energy (DOE).

In conclusion, New Mexico has a diverse and growing economy that is supported by its rich natural resources, strong tourism industry, vibrant business climate and highly educated workforce making it an attractive destination for businesses seeking new opportunities while providing residents with quality jobs plus ample recreational opportunities allowing them to enjoy their beautiful surroundings year round if desired making it truly unique compared other states across America today.

Top 3 Counties in New Mexico

According to, main counties in New Mexico include:

1. Bernalillo County: Bernalillo County is the most populous county in New Mexico and is located in central New Mexico. It is home to the state’s largest city, Albuquerque, and is a major economic center for the state. The county seat of Bernalillo County is Albuquerque, and the county has a total area of 1,167 square miles. The population of Bernalillo County was estimated to be 676,685 as of 2019. The county has many attractions including Sandia Peak Tramway, Old Town Albuquerque, Petroglyph National Monument, Coronado State Monument, and much more.

2. Santa Fe County: Located in North-Central New Mexico, Santa Fe County is the second most populous county in the state with an estimated population of 150,867 as of 2019. The county seat of Santa Fe County is Santa Fe and it has an area of 1,911 square miles. It’s known for its beautiful landscapes and rich history as well as its cultural attractions like Museum Hill and Palace of Governors. Popular outdoor activities include hiking at Hyde Memorial State Park or skiing at Ski Santa Fe as well as exploring some of the ancient Puebloan ruins found throughout the region.

3. Doña Ana County: Doña Ana County is located in southern New Mexico near El Paso Texas and has a population estimated to be 219,972 as of 2019 making it the third most populous county in New Mexico. The county seat for Doña Ana is Las Cruces which makes up about half its population size alone with an estimated 103,738 people living there according to recent estimates from 2019. The total area for Doña Ana County is 3456 square miles and it’s known for its diverse landscape including rugged mountains to desert plains perfect for hiking or camping trips or even day trips to nearby White Sands National Monument or Organ Mountains Desert Peaks National Monument which are both located within Doña Ana’s borders.

Economy of New Mexico