He pushed back against the negative tone of the current presidential race, arguing the US has the “strongest, most durable economy in the world”.
“Anyone claiming that America’s economy is in decline is peddling fiction,” Mr Obama told lawmakers.
The speech to Congress highlighted his accomplishments such as health reform.
However, his focus was on cementing his legacy rather than unveiling new policies.
“For my final address to this chamber, I don’t want to talk just about the next year,” he said. “I want to focus on our future.”
Mr Obama focused on tackling income inequity, using technology to combat climate change and how to maintain national security while not becoming mired in far-flung conflicts.