Alexandria boasts a robust and resilient economy, heavily influenced by its proximity to Washington, D.C. The local economy is driven by the federal government, professional services, technology, and tourism.
The city serves as the headquarters for numerous federal agencies, most notably the U.S. Patent and Trademark Office (USPTO) and the National Science Foundation (NSF). The Department of Defense is also a massive employer, anchored by the Mark Center. Beyond government, Alexandria is often referred to as the "Association Capital of the World," home to hundreds of national and international trade associations and non-profit organizations.
While median incomes are high, the cost of living—particularly housing—is also well above the national average. The city's economic development strategies currently focus on expanding the technology sector (catalyzed by the nearby Amazon HQ2 and the Virginia Tech Innovation Campus), fostering small businesses, and maintaining a vibrant retail and hospitality sector.