Louisiana's economy at a glance
Although the days of colonization are long gone, some of the activities that contributed to Louisiana's development are still relevant today, particularly the exploitation of natural resources. New economic sectors have been added over the centuries and through the industrial revolutions. It's worth noting that Louisiana, with New Orleans at the top of the list, is home to a growing number of startups focused on innovation and new technologies.
Here's an overview of the major sectors of the Louisiana economy:
Agriculture and livestock. A rich soil, a mild climate and abundant rainfall: this cocktail makes Louisiana a major agricultural producer. Sugar cane, cotton, corn, sweet potatoes and rice are its main crops, not to mention fruits such as strawberries and peaches. The state is also renowned for its poultry, eggs, dairy products and cattle.
Commercial fishing, which is practiced here in both sea and fresh water, makes Louisiana one of the country's most important producers, and the leader 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 the state is forested), 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 fossil fuels that are widely exploited in Louisiana, whether in the northern part of the state between Shreveport and Monroe, or offshore in the Gulf of Mexico. As one of the country's largest producers - the 17 refineries produce 3.4 million barrels a day, around 20% of the national output - it's no surprise to learn that the vast majority of US offshore oil platforms are in Louisiana. Other interesting facts: the state's refineries produce hundreds of petroleum-derived products, and more than half of US liquefied natural gas exports come from Louisiana.
The leading producer of salt in the United States, with over 10 million metric tons, Louisiana also produces clay, gravel, sand and sulfur.
Louisiana is also rich in waterways, notably 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 sea freight volume, while the Port of Baton Rouge handles oil and chemical shipments, as well as aluminum and grain.
Thanks to tax incentives introduced in the early 2000s, Louisiana has become a major location for film and TV shoots, earning 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 one of Louisiana's major industries, and the4th largest employer in the state. After Hurricane Katrina, however, many tourists shunned Louisiana and changed their tourist habits. The Louisiana authorities then rolled up their sleeves to revive this important financial resource, and the figures for recent years show that their efforts were not in vain.
That said, tourism was back on track in Louisiana... until the pandemic hit the country full force in March 2020. Just before that, 2019 broke an 8th record in a row with some 53.2 million visitors, raking in some $18.9 billion in tourism revenue and $1.92 billion in sales tax income. Some 242,000 people are employed in the travel and hospitality industry to accommodate all this tourism manna.
While New Orleans and the surrounding area capture a large share of the tourism market, many visitors also head to Cajun country or enjoy the great outdoors in the north 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 served by airlines operating domestic flights within the United States.
Political and social issues
Louisiana faces many challenges, as it ranks among the lowest in the U.S. in terms of health care, education, the economy, infrastructure, opportunity, fiscal stability, public safety and environmental protection.
Global warming is having a considerable 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 resembles a "patchwork of successes and failures", as Obama had already noted during his campaign. While the tourist districts have been pampered, this is not the case for more humble neighborhoods like the Lower Ninth Ward. LaToya Cantrell, elected in 2018, is one of the few female mayors to head an American city. She is working to ensure that the rebuilding of the city is also accompanied by a decline in poverty and delinquency. An African-American herself, she is a strong hope for this often sidelined community.
Finally, as a conservative state, abortion rights have suffered setbacks in recent years, not to mention policies and legislation aimed at the LGBTQ+ community, which are conspicuous by their absence outside the cities of New Orleans and Shreveport.
