Forbes' list of the 25 best states for business put Arizona at No. 24.
Virginia was No. 1.
Arizona's negative five-year annual gross state product growth came in at minus 1.1 percent.
Forbes explained its methodology:
Our study looks at six important factors for businesses: costs, labor supply, regulatory environment, current economic climate, growth prospects and quality of life. Virginia is the only state to rank in the top five in four areas -- only missing on costs and growth prospects.
Arizona rated high in a companion outlook about job growth.