2025 Economic Forecast

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• Create Date June 3, 2025
• Last Updated July 20, 2025

As Los Angeles County’s principal economic development leadership organization, the Los Angeles County Economic Development Corporation (LAEDC) produces an annual forecast to assess and predict key national, state, regional and local economic indicators.

The forecast also deepens beneath those “headline” indicators to understand the key issues, pressing economic concerns, and longer-term trends that drive them. The forecast provides insights to inform policymakers’ decisions and business and community leaders across the Los Angeles region and California.

The residents of Los Angeles County are resilient. They have shown this regularly over the past few years: weathering the economic shutdowns and supply-chain dislocations from the COVID-19 pandemic; navigating the subsequent bout of high inflation; and managing the fallout from the dual Hollywood strikes. Just two months into 2025, however, it is clear that this year this resilience will be called upon again. Massive wildfires in January destroyed entire neighborhoods in Pacific Palisades and Altadena, uprooting thousands from their homes, businesses and communities. Moreover, expansive changes to federal policies on tariffs and immigration and a reprioritization of federal spending threaten to upend the operations of businesses and the livelihoods of workers across the County.

In the face of these difficulties, the success of the Los Angeles County economy is a testament to these residents. The County boasts a trillion-dollar economy— the 20th largest in the world-because of their unity of spirit applied through a diversity of industries. We look forward to watching Los Angeles County rise to meet and overcome the latest set of challenges.