FY27 Proposed Budget

Economic Overview

The Iowa City economy experienced consistent annual growth from 2010 through 2018; real GDP grew in thirty-six consecutive quarters up until that time. A decline in GDP occurred in 2019 due to the international trade wars which broadly impacted the Midwest region. This was followed by the impact of the

COVID-19 pandemic in 2020. Growth rebounded as expected in 2021 and slowed in 2022 due to inflation. (Source: Bureau of Economic Analysis)

Iowa City’s employment picture has fared better than the state as a whole over the past ten years, and its unemployment rate continues to remain below state and national levels. As of October 2025 (preliminary), the Iowa City Metropolitan Statistical Area (MSA) was the twenty-fourth lowest unemployment rate of all MSAs nationally.

(Source: Bureau of Labor Statistics)

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