Economic Summary
Despite its small population, Alaska is a wealthy state, generously endowed with natural resources.
Alaska provides one–tenth of the nation’s domestic oil supply and holds one–fifth of proven U.S. natural gas reserves. The waters off Alaska’s coasts support the nation’s richest commercial fisheries. Visitors come to Alaska to experience unspoiled nature, creating a steadily growing tourism industry.
Because of Alaska's geographic location atop the Pacific Rim, military forces based in the state can be quickly shifted to many parts of the globe. Alaska also has ample open space for air and ground warfare training. Because Alaska is about midway on U.S.-Asia air routes, Alaska's airports, play an important support role for international air cargo movements.
Twelve Alaska-based regional Native corporations and approximately 200 Native village corporations received 45 million acres of land and $962 million in cash in a 1971 settlement by Congress of long-standing aboriginal land claims. Today many of the Alaska Native corporations have grown to become strong business enterprises with substantial financial resources.
Alaska's state government is financially strong as a result of the oil and gas resources located on state-owned lands. Alaska's "Permanent Fund" has a market value of nearly $30 billion, and state-owned development corporations finance business development and housing.
Alaskans pay no state sales or income tax, and an annual distribution of a dividend from the Permanent Fund to citizens, a benefit unique to Alaskans, injects nearly $1 billion per year into the state's economy.
While there are challenges for Alaskans, the state has important assets and advantages. It has a generous endowment of natural resources, a strategic geographic location and financial resources held by the state government and Alaskan-owned businesses like the Alaska Native corporations. These benefits, plus the vitality and enterprise of Alaska's people, create the promise of a rich future.
