Primary Economic industries

The activities that have driven Alaska's economy in the past (natural resources, federal spending, and its strategic location) continue to power the state's primary economic industries today. The primary economic industries are the businesses and activities that bring money into Alaska from outside. You can think of these as the foundational parts of Alaska's economy because they are the source for most of the money that comes into the state.  How big Alaska's economy is and how much it grows is primarily based on how much money flows into the state from these primary economic industries.

Most of Alaska's primary economic industries are based on the state's abundant natural resources. The oil, mining, seafood, and timber industries all depend on selling Alaska's natural resources to markets outside Alaska. The money earned from selling these products returns to the state through wages for jobs, business spending, profits for Alaskan-owned businesses, and taxes to fund the government.  

Tourism is also an important primary industry for Alaska. While not based on selling natural resource commodities, Alaskan tourism can still be considered based on the state's natural resources. The primary reason visitors travel to Alaska is to experience the state's unique natural world, such as visiting national parks or sports hunting and fishing.  

Another important primary industry is airport services. Surprisingly for its small population, Anchorage is the third largest airport worldwide by cargo volume. Anchorage's location as a midpoint between U.S. and East Asian air routes makes it the ideal location to refuel, change crews, and perform maintenance. In 2021, over half of all cargo flown between Asia and North America transited through Anchorage. 

The largest primary economic industry in Alaska is the federal government. While not a business, federal government spending brings more money into Alaska than any other industry. The federal government spends more money per person in Alaska than any other state. 

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