Louisiana's economy at a glance
Although the era of colonization is well and truly over, some of the activities that contributed to the development of Louisiana are still relevant in the 21st century, notably the exploitation of natural resources. New economic sectors have been added over the centuries and through the industrial revolutions. It is worth noting that Louisiana, with New Orleans at the top of the list, is home to an increasing number of startups focused on innovation and new technologies.
Here is an overview of the major sectors of the Louisiana economy:
Agriculture and livestock.
Rich soil, a mild climate and abundant rainfall: the cocktail allows Louisiana to be a major agricultural producer. Sugar cane, cotton, corn, sweet potatoes and rice are its main crops, not to mention fruits like strawberries and peaches. The state is also known for its poultry, eggs, dairy products and cattle.Commercial fishing,
which is practiced here in both marine and fresh water, makes Louisiana one of the largest producers in the country, number one in seafood, more than the combined production of the states of Virginia, California and Massachusetts.The forestry industry
is a major contributor to the state's economy (nearly half of the state is covered by forests), with some $3.6 billion in revenue. Wood (especially pine) is processed into cardboard and paper or used in construction: many Louisiana homes are still made of wood.Crude oil and natural gas
are widely exploited in Louisiana, both in the northern part of the state between Shreveport and Monroe and offshore in the Gulf of Mexico. As one of the nation's largest producers - the 17 refineries produce 3.4 million barrels per day, or about 20 per cent of the nation's output - it is no surprise to learn that the vast majority of U.S. offshore oil rigs are in Louisiana. Other interesting facts: the state's refineries produce hundreds of petroleum-derived products, and more than half of U.S. liquefied natural gas exports come from Louisiana.The largest producer of salt
in the U.S. with over 10 million metric tons, Louisiana also produces clay, gravel, sand and sulfur.Louisiana is also rich in waterways,
including the Intracoastal Waterway, which crosses the state from east to west, from the Mississippi to the Sabine River near Texas. The Port of New Orleans is one of the largest in the U.S. in terms of volume for ocean freight, and the Port of Baton Rouge is a major port for oil and chemical shipments as well as aluminum and grain.Thanks to tax incentives introduced in the early 2000s, Louisiana has become a mecca for film and television shoots
, giving it the nickname "Hollywood South" or "Hollywood on the Bayou.Finally, other economic sectors contribute strongly to Louisiana's GDP, including real estate, health and social services, retail trade, construction, wholesale trade and finance and insurance.
A popular tourist destination
Tourism is also a major industry in Louisiana, the4th largest employer in the state. After Hurricane Katrina, however, many tourists shunned Louisiana and changed their tourism habits. The Louisiana authorities then rolled up their sleeves to revive this important financial resource and the figures of the last few years show that their efforts were not in vain.
That said, tourism was back on track in Louisiana... until the pandemic hit the country hard in March 2020. Just before that, 2019 broke an eighth straight record with some 53.2 million visitors, raking in some $18.9 billion in tourism revenue and $1.92 billion in sales tax revenue. To accommodate all of this tourism revenue, some 242,000 people are employed in the travel and hospitality industry.
While New Orleans and its surrounding areas capture a large portion of the tourism market, many visitors also travel to Cajun country or enjoy the outdoors in the northern part of the state. Louisiana has one international airport, Louis Armstrong New Orleans International Airport, and six regional airports (Alexandria, Baton Rouge, Lafayette, Lake Charles, Monroe and Shreveport), all of which are serviced by airlines operating domestic flights within the United States.
Political and social issues
Louisiana faces many challenges as it ranks near the bottom of the U.S. in terms of health care, education, economy, infrastructure, opportunity, fiscal stability, public safety and environmental protection.
Global warming is having a significant impact in Louisiana as the southern part of the state becomes increasingly submerged and natural disasters take on unprecedented proportions. Moreover, more than 15 years after Katrina, the reconstruction of New Orleans still looks like a "patchwork of successes and failures," as Obama had already noted during his campaign. While the tourist areas have been pampered, this is not the case for the more humble neighborhoods like the Lower Ninth Ward. LaToya Cantrell, elected in 2018, is one of the few female mayors to lead an American city. She is working to ensure that the rebuilding of the city is also accompanied by a decrease in poverty and delinquency. An African-American herself, she is a strong hope for this community that is often pushed aside.
Finally, as a conservative state, abortion rights have suffered setbacks in recent years, and this is without counting the policies and legislation aimed at the LGBTQ2 community, which are conspicuous by their absence outside the cities of New Orleans and Shreveport.
