Economy of the Washington metropolitan area

The economy of the Washington Metropolitan Area includes the economy of Washington, D.C., and its suburbs, including parts of Maryland, all of Northern Virginia, and Jefferson County, West Virginia. In 2022, the DC Metro Area had the country's fifth-highest Gross Metropolitan Product, at $541 billion. Although the region's economy is highly diverse, its principle industries include the US federal government, tourism, information technology, research, hospitality, news media, and bioscience.

According to Washington's comprehensive annual financial reports, the top DC employers by number of employees in 2022 included Georgetown University, Children's National Medical Center, Washington Hospital Center, George Washington University, American University, Georgetown University Hospital, Booz Allen & Hamilton, Insperity PEO Services, Universal Protection Service, Howard University, Medstar Medical Group, George Washington University Hospital, Catholic University of America, and Sibley Memorial Hospital.

Federal government

As the national capital of the United States, the country's federal government is headquartered in the city, and is therefore a major employer and important economic engine for the broader region. As of July 2022, 25% of people employed in Washington, D.C., were federal government employees. Important federal government agencies and departments are also located in suburban Washington. The Pentagon, which houses the US Department of Defense, is headquartered in Arlington County, Virginia, and the CIA is headquartered in the Langley area of Fairfax County, Virginia. The FBI is planning on moving its headquarters from Downtown Washington to Prince George's County, Maryland.

In addition to people employed directly by the federal government, the region also has many people employed in organizations whose work relies directly on funding from or contracting with the federal government, or in some other way interacts directly with the government. Many lobbying organizations seek to influence US government policy. Similarly, the region has a high concentration of law firms headquartered in the area or with major offices in the region that work with the federal government as well as with other institutions and industries. Historically, K Street was where many of the city's lobbying organizations were located, and is therefore sometimes used as a metonym for lobbying of the US federal government. Among the key lobbying and law firms include Brownstein Hyatt Farber Schreck, Akin Gump Strauss Hauer & Feld, and Holland & Knight.

In addition to important law firms and lobbying organizations, many other organizations rely on the federal government for employment as a result of receiving funding directly from the government or using their work with the government to encourage private donors to support their mission. These include defense contractors, civilian contractors, nonprofit organizations, trade unions, industry trade groups, and professional associations, many of which have their headquarters in the Washington area so they can be close to the federal government.

As of February 2022, the largest U.S. government agencies located in the Washington Metropolitan Area are: the United States Department of Defense headquartered in the Pentagon in Arlington, Virginia, the United States Postal Service, the United States Department of Veterans Affairs, the United States Department of Homeland Security, and the United States Department of Justice.

Defense

The US federal government's demand for military technology has led to the growth of a large defense sector in the region. As a result, many key defense contractors are headquartered in the Washington area. The world's five largest weapons manufacturers are all headquartered in the region: Lockheed Martin is headquartered in Bethesda, Maryland; RTX Corporation is headquartered in Rosslyn, Virginia; Northrop Grumman is headquartered in West Falls Church, Virginia; Boeing is headquartered in Crystal City, Virginia; and General Dynamics is headquartered in Reston, Virginia.

Diplomacy, global finance, and international development

Washington is home to 185 foreign embassies, where many diplomats and ambassadors work. Key diplomatic meetings occur at embassies, as do important cultural activities and performances. D.C. is consequently one of the most culturally diverse cities in the world and hosts a number of internationally themed festivals and events, many of which are done in close collaboration with foreign embassies.

In addition to foreign diplomatic missions, the city holds an important role in global finance and international economics. The Federal Reserve ("The Fed"), located along Constitution Avenue, is the United States' central bank. By conducting monetary policy, the members of the Federal Reserve Board impact the value of the US dollar, key interest rates, and the value of currencies around the world.

The World Bank and International Monetary Fund (both located in the Golden Triangle) are key global financial and development institutions whose policies have a dramatic affect on the wealth and development of countries across the world. They use loans and grants to influence foreign countries' level of economic development and financial stability. Other key financial and development institutions include the Inter-American Development Bank and USAID, the US agency charged with leading the government's international development portfolio. As a result of this rich concentration of finance and development expertise as well as organizations that influence global development, the Washington region is the global center for the international development sector, serving as the home for key firms, such as Chemonics International. As a result of the heavy importance the city holds in global finance, in 2023 the Global Financial Centres Index ranked DC as the 8th most competitive financial center in the world.