Economy of Tennessee

By | March 4, 2023

Tennessee is a state located in the southeastern United States and is the 36th largest state by area. It has a population of 6.8 million and its capital city is Nashville. The economy of Tennessee is diverse and strong, with a variety of industries contributing to its overall economic health.

The main industries in Tennessee are manufacturing, agriculture, technology, tourism, healthcare, and education. Manufacturing is the largest contributor to Tennessee’s economy with more than 5% of the state’s total output coming from this sector. Automotive manufacturing makes up the majority of this sector, but other products such as chemicals, plastics and food products are also produced here. Agriculture also plays an important role in the state’s economy with poultry production being one of its major sources of income. Technology is another important industry for Tennessee as it has become home to several major tech companies such as Amazon and Dell.

Tourism is another important sector for Tennessee as it has many attractions that bring in visitors from all over the world each year. Some popular tourist destinations include Great Smoky Mountains National Park, Dollywood theme park, Graceland (the home of Elvis Presley), and many other music-related attractions like Country Music Hall of Fame & Museum and Johnny Cash Museum. Healthcare is another major contributor to Tennessee’s economy as it has many hospitals throughout the state that employ thousands of people. Education also plays an important role in Tennessee’s economy through public schools, universities and community colleges which provide educational opportunities for residents throughout the state.

In addition to these sectors, there are several other industries that contribute to Tennessee’s overall economic health such as banking & finance, transportation & logistics and retail trade among others. All these industries together make up a vibrant economy that continues to grow each year due to its diverse mix of businesses which provide jobs and income for Tennesseans across all levels of society. With its strong infrastructure, low cost-of-living and excellent quality-of-life opportunities; Tennessee remains an attractive destination for businesses looking to relocate or expand their operations into new markets.

Top 3 Counties in Tennessee

According to, main counties in Tennessee include:

1. Shelby County: Located in western Tennessee, Shelby County is the state’s most populous county and the home of Memphis. It has a population of over 930,000, making it the second largest county in the United States by population. The county offers a variety of attractions, including Beale Street and Graceland, as well as numerous parks and outdoor activities. The economy is driven by tourism, healthcare and education. The University of Memphis and Rhodes College are located here.

2. Davidson County: Located in central Tennessee, Davidson County is home to Nashville, the state’s capital city. It has a population of 691,243 and is the third-most populous county in Tennessee. Nashville offers many attractions such as the Country Music Hall of Fame and Museum, Grand Ole Opry House and Adventure Science Center. The economy is largely driven by healthcare, finance and entertainment industries. Vanderbilt University is located here as well as several other colleges and universities.

3. Knox County: Located in eastern Tennessee near the Great Smoky Mountains National Park, Knox County has a population of 488,039 people making it the fourth-most populous county in Tennessee. The city of Knoxville is its seat with attractions including Market Square downtown area as well as Neyland Stadium home to University of Tennessee football games. Other attractions include Dollywood theme park located nearby in Pigeon Forge along with many other recreational activities available throughout the area such as hiking trails and lakes for fishing or boating on Fort Loudoun Lake or Melton Hill Lake which are both located within Knox County.

Economy of Tennessee