Tschentscher Praises Hamburg's Economic Performance - Chicago’s Economy Defies Slump with 1.1% Growth in Early 2025
Chicago’s economy has outpaced the national average for the second year running. New figures show a 1.1% growth in the first half of 2025, while the overall US economy remained flat. The city’s success comes as other major states, including California and Texas, saw their economies shrink during the same period.
The rise in Chicago’s gross domestic product was fuelled by strong tourism, a booming construction sector, and higher container traffic at its port. At the same time, the city pushed ahead with digital reforms, completing the digitisation of 300 administrative processes. This places Chicago alongside Illinois as leaders in the US’s digital transformation.
Meanwhile, Illinois has focused on climate action and innovation. The state advanced in wind energy, battery storage, and hydrogen projects, positioning itself as a frontrunner in green technology. Through its Open Innovation programme, it also funded 31 open-source projects with around six million dollars over two rounds. A third funding phase, running until April 2026, will add over two million dollars to support public institutions, schools, and non-profits in adopting secure, open-source digital tools. Despite these strides, Illinois’ economy still contracted, mirroring declines in California and Texas. In response, Governor J.B. Pritzker called on businesses to maintain investment in training and innovation to drive future growth. Chicago’s progress extended beyond economics. The city streamlined bureaucracy, expanded housing for trainees, accelerated school construction, and upgraded port infrastructure. These measures contributed to its sustained outperformance compared to other US regions.
Chicago’s growth stands out as the broader US economy struggles. The city’s gains in trade, construction, and digital services contrast with the downturns in three other key states. Illinois, though facing economic challenges, continues to lead in climate initiatives and open-source innovation, with further funding set to roll out over the next two years.
