By Joy Vann 

After months of starting, postponing and stopping tariffs, a serious reduction in the federal workforce and the Federal Reserve dropping interest rates, it’s time for Old ֱ University’s annual State of the Region report. 

At events in and in , Bob McNab, Ph.D., chair of the Department of Economics and director of the Dragas Center for Economic Analysis and Policy in the Strome College of Business, and Vinod Agarwal, Ph.D., professor of Economics and deputy director for the Center, will cut through the clutter of the 24-hour news cycle to answer questions about how the Hampton Roads economy is faring and what might be in store on the national stage.  

Dr. McNab notes there is both good and bad news in the report.  

“While the economy of Hampton Roads will grow in 2025, it faces headwinds from many directions. Tariffs have reduced trade through the Port of Virginia. There were 2,000 fewer federal civilian employees in August 2025 than August 2024, and Hampton Roads’ job growth has slowed considerably in 2025,” Dr. McNab said. 

“While we expect defense spending to increase in the region, we should be wary of increasing our reliance on federal spending, especially when the deficit will increase to over $2 trillion annually in the coming years. The changes in federal trade, immigration and spending policy represent an opportunity for the region to pivot towards collaboration and ֱ diversification.” 

The writers and researchers of the Dragas Center who produced this 26th annual report did so to provide regional leaders with reliable data to tackle issues including employment, housing, education and the environment.  

One key takeaway is that the regional economy continues to grow — even while the national economy shows signs of slowing. Projections call for continued ֱ growth in 2025.  

While there are plenty of other projections, the report also notes when the writers presciently discussed topics ahead of their time such as  the nursing shortage, sea-level rise, the futures of the Hampton Roads Bridge-Tunnel and The Tide, and the necessity of the integration of Eastern Virginia Medical School into Old ֱ University.  

As in the past, the report calls attention to Hampton Roads’ reliance on federal spending and suggests that stakeholders “diversify the region’s ֱ base to bolster private sector growth over the remainder of the decade.” 

This State of the Region report topics include:  

Change is the Only Constant: The Economy of Hampton Roads 

There are significant changes in trade, immigration and tax policies that will impact the economy of the region, state and the nation in the coming years.  

Defense, the Port and Tourism 

While defense spending and traffic at the Port of Virginia have picked up, the hotel industry’s growth has slowed. The report shows how these “pillars” of the regional economy are faring.  

Heads Carolina, Tails Somewhere Else 

While wages and incomes have grown, migration to places outside of Hampton Roads and beyond the borders of the commonwealth continues to signal all isn’t rosy in Virginia.  

The Economic Impact of Norfolk International Airport (ORF) 

ORF recovered quickly after the international pandemic slump and set record numbers in 2024. The report examines how the health of the airport impacts the regional economy.  

Silver Tsunami for the Third Sector 

Baby Boomers, those born between 1946 and 1964, are retiring in record numbers. The demographic shift affects every area of life. What will that mean for the nonprofits of Hampton Roads? 

Reflections on the State of the Region Report 

James V. Koch, Ph.D., founding director of the Dragas Center for Economic Analysis and Policy, looks back on the past 25 years of the State of the Region report and what it has meant to Hampton Roads.  

Hampton Roads’ Collaborative Spirit Produces Regional Results 

Drew Lumpkin, lead author and vice president of external affairs and strategic initiatives of the Hampton Roads Roundtable, examines the impact of 20 years of regional collaboration. 

The first State of the Region presentation will take place from. It’s hosted by  the Hampton Roads Chamber of Commerce. Registration and networking will be conducted 11:30 a.m. to noon. 

A second presentation of the report, hosted by The Virginia Peninsula Chamber of Commerce, will be held .  

 Since 2000, the Dragas Center's State of the Region Report has been an October fixture, starting important conversations about topics that affect us all. After the Oct. 8 event in Norfolk, this year's State of the Region Report will be available  along with every other report produced by the Dragas Center.