In Q4 2024, the top five private industries that contributed to the state’s total Gross State Product (GSP) were Real Estate and Rental and Leasing, Accommodation and Food Services, Retail Trade, Construction, and Healthcare and Social Assistance. These five industries alone, accounted for almost half of the state’s total private industry output and represent the key characteristics of the Nevada economy.

Key performance highlights include

• Real estate and rental and leasing: This sector remains the largest private industry contributor to Nevada’s economy. Despite some cooling off in recent quarters, output from the sector grew by 2.8 percent in the 12 months to December 2024. Residential and commercial markets softened in response to higher interest rates and challenging economic conditions. Additionally, growth in this sector is normalizing, following the boom years pre-2020. Despite this near-term softening, the outlook for the sector is positive and there is the potential for sizeable growth in the coming years due to the region’s robust population growth.
• Accommodation and food services: Nevada’s tourism industry is a significant contributor to the state’s economy with accommodation and food services the second largest contributor to private sector output. In Q4 2024, output from this sector made up 12.0 percent of total state demand, increasing by 0.6 percent in the previous 12-month period. However, consumer spending shifts and growing debt levels pose challenges for long-term growth. Over the next 12 months, this sector may face more uncertainty if national economic conditions affect discretionary spending.
• Retail Trade: Retail trade in Nevada was a key contributor to growth in Q4 2024, increasing by 4.4 percent over the previous 12 months. The recovery in brick-and-mortar retail sales and further expansion of e-commerce sales and logistics drove this strong result during the period. Over the next year, this sector is expected to maintain stable performance, benefiting from both physical retail growth and continued logistics expansion.
• Construction: In Q4 2024, the construction industry was the fourth largest contributor to total output from the private sector in Nevada, making up 6.7 percent of final demand. However, output from the construction sector has experienced challenges, with total output down by 2.6 percent compared to Q4 2023. While some of this decline can be attributed to the normalization of activity following strong growth, the sector has faced challenges over recent years as high interest rates and high construction costs have dampened demand. Despite softening, the outlook for construction is positive, with key sectors such as hotels & casinos, entertainment, and healthcare all projected to grow strongly in the coming years. Additionally, supportive government policies and increased investment into the region’s infrastructure are expected to contribute to a stronger outlook for construction.
• Healthcare and Social Assistance: Nevada’s healthcare sector continues to grow steadily, driven by the state’s aging and expanding population, which is increasing demand for medical services. This sector saw a 3 percent increase in output in the year to December 2024 and follows closely behind construction as one of the top five private sector contributors to the state’s total output. Nevada’s healthcare and social assistance industry is projected to see robust growth in the coming decade, supported by increased investment into new medical precincts and infrastructure aligning with the region’s vision of becoming a top-tier healthcare destination in the southwestern United States.

On a broader scale, the US economy has shown considerable strength in 2024, with real GDP growing by 2.8 percent annually. Consumer and governmental spending, alongside strong export demand, have been key drivers. The effort to curb inflation continued, with the Consumer Price Index (CPI) easing to 2.8 percent year-on-year in February 2025, down from 3.0 percent in January. The central bank hold interest rates steady for a second straight meeting, following three consecutive rates reductions in 2024. The slowdown in rate cuts suggests policymakers may adopt a more cautious approach, with future reductions dependent on clearer inflation trends and ongoing tariff developments.

Uncertainties cloud the horizon following the presidential election. Policy proposals from President Trump, including across-the-board tariffs and higher tariffs on Chinese, Mexican and Canadian imports, could impact inflation and national economic trends. While these measures aim to boost domestic production, their potential effects on consumer prices and economic growth remain uncertain. Such policies, alongside competition from emerging gambling markets, could influence the outlook for Las Vegas’ economy.