On January 9, 2025, the Chamber hosted its annual State of the Economy event, bringing together the Greater Philadelphia business community and Chamber members for a panel discussion on the region's economic forecast for 2025.

The annual beginning-of-the-year gathering allows the region's business community to hear from local economists and business leaders about key industry insights, trends, and opportunities expected to drive the region's economic growth in the coming year. It also serves as a platform for the Chamber to present survey results from Chamber members on their business conditions in 2024 and their expectations for the year ahead.

Survey Results: Greater Philadelphia Business Conditions

Roc Armenter, executive vice president and director of research at the Federal Reserve Bank of Philadelphia, was one of the event panelists and shared key takeaways from the survey, which his company led, including:

  • Economic Activity: Regional business leaders expect "minimal changes" in 2025, with an index of 5.
  • Payroll Trends: A slight increase in payrolls is expected, indicating a healthy labor market.
  • Expansion Plans: 42% of business leaders surveyed plan to expand their company's physical footprint, with 14.5% noting plans to expand within the region. Additionally, nearly 64% of surveyed businesses plan to maintain their current presence in the region, highlighting Greater Philadelphia's strong business ecosystem.

Panelists' Key Perspectives

Roger Aliaga-Díaz, Ph.D., Global Head of Portfolio Construction and Chief Economist, Americas, Vanguard, shared Vanguard's 2025 economic outlook.Aliaga-Díaz noted indications of continued growth and resilience in the U.S. economy, which he said for Greater Philadelphia suggests a stable economic environment conducive to business expansion and investment, supported by higher interest rates that could benefit long-term investors.

Chris Goodchild, Managing Director and Senior Partner, Boston Consulting Group, discussed the transformative impact of generative AI, noting significant revenue growth and shareholder value for companies embracing this technology. According to Goodchild, "companies embracing generative AI are growing their revenue 50% faster than their peers and providing 60% more value for their shareholders." 

Gerald Sweeney, President & CEO at Brandywine Realty Trust, spoke on the life sciences industry's continued growth in the region from the perspective of real estate demand. "In the long term, the dynamics are very positive given the employment base we have here, the research that's being done here, and the FDA's increasing comfort in approving cell and gene therapy."

Sweeney also highlighted that Spark Therapeutics' 500,000-square-foot, six-story Gene Therapy Innovation Center, expected to be completed in 2026, will become "another life science anchor institution in the city – as the hub of Roche's cell and gene thearpy research for the Americas."

Looking Ahead: Philadelphia 2026

Angela Val, President and CEO of Visit Philly, highlighted the significant economic impact expected from major events happening in Philadelphia in 2026, which includes six FIFA World Cup matches, the semi-quincentennial celebration of the United States, and the MLB All-Star Game. Together, these events are projected to generate approximately $770 million for Greater Philadelphia's economy, including creating 6,600 jobs and generating $51 million in tax revenue.

Support Greater Philadelphia's Economic Future

The Chamber remains dedicated to fostering Greater Philadelphia's economic growth and development through initiatives like Select Greater Philadelphia, which positions the region as a premier business destination and fosters inclusive growth. For more information, visit greaterphl.com or contact our Select Greater Philadelphia team.