Economic climate in Connecticut forces more businesses to close

The economic climate in Connecticut is forcing more businesses in the Nutmeg state to shut their doors.

In spite of numerous incentives—over $35 million in relief in 2020—the state has been unable to stop the economic bleeding. The latest casualties of the state’s war on business include IBM in Southbury; Bridgeport Stop n Shop is also closing.

Eateries have suffered, some of them decades-old, and dearly beloved.

The number of business closings has increased, with 37% of small businesses closing in 2020 alone.

Even prior to the Covid crisis, Connecticut’s harsh business climate and tax base drove away economic activity. In 2016, Connecticut fell four spots to 43rd overall in the latest annual Forbes Best States for Business rankings. In 2018, the state climbed to 33rd before dropping to 37th in the state rankings.

Connecticut fell 15 places to 39th in CNBC’s 2022 America’s Top States for Business ranking, weighed down by high costs and an economy struggling to recover from the pandemic, reflecting the state’s ongoing fiscal challenges.