Texas Economy Again Expands Faster Than Nation 5th Quarter In A Row (2024)

FAQs

Why does Texas have such a strong economy? ›

As the 8th largest economy among the nations of the world, Texas offers a combination of unique competitive business advantages that no other state can claim: a business-friendly climate—with no corporate or personal income tax—along with a highly skilled and diverse workforce, easy access to global markets, robust ...

Oil and natural gas production bestowed new economic importance and diversity on the Texas economy. Nevertheless, they only reinforced the state's reliance on the production of so-called "primary goods"--mining (including oil and natural gas production), timber, agriculture and ranching.

“Texas is again outpacing the nation in economic expansion and job growth thanks to the best business climate and the strongest workforce in America,” said Governor Abbott. “Across every region of this great state, Texas offers hardworking Texans the freedom to aspire.

Texas produces 23% of U.S. GDP, the value of all goods and services produced. Texas accounts for 22% of U.S. exports. Texas is the top exporting state, now for 21 years in a row. Texas is the top tech exporting state for 10 years in a row.

[1] Dallas–Fort Worth and Houston rank among the top six largest metropolitan areas in the U.S. in terms of both population and economic output. In fact, Texas is the only state to have two metros in the top 10 for both measures.

The state of Idaho experienced the most significant growth in real GDP in 2022, growing 4.9 percent when compared to 2021. Tennessee and Florida also experienced growth at or more than four percent. Additionally, several states experienced a decline in real GDP, including Alaska, Louisiana, and Iowa.

According to the U.S. Census Bureau, the national poverty rate was 12.4% in 2022, up from 11.2% in 2021. These states have the highest percentages of poverty in the country: Mississippi, Louisiana, West Virginia, New Mexico, Arkansas, Kentucky, Alabama, Oklahoma, Texas, and New York.

California ranked second in WalletHub's 2022 “best states to live in” index. The financial services firm gave Texas the 11th place slot. New York was first, and Alaska was last. The index considers 16 factors, including weather, average hours worked per week, quality of roads and commute time.

With a growing base of industry, the state leads in many industries, including tourism, agriculture, petrochemicals, energy, computers and electronics, aerospace, and biomedical sciences. Texas has led the U.S. in state export revenue since 2002 and has the second-highest gross state product.

Why is Texas the best state to live in? ›

The Lone Star State has plenty to offer potential residents, with Texas providing low costs and great job prospects. It offers a range of recreational activities that are affordable thanks to its attractive real estate market coupled with the fact it doesn't have any income tax in place.

And as of 2022, Texas led the nation as home to the most Fortune 500 companies. Texans also enjoy a lower cost of living, 8% lower than the national average, according to Forbes. One reason is that housing is significantly more affordable in the Lone Star State.

After California, the economy of the State of Texas has the second-largest GDP in the nation.

The Texas economy today relies largely on information technology, oil and natural gas, aerospace, defense, biomedical research, fuel processing, electric power, agriculture, and manufacturing.

Texas' economy ranks 2nd in size among states and Washington, DC. Explore this page to learn about the state's economic growth, job market, and economy size, backed by data from reputable sources like the Bureau of Economic Analysis and the Bureau of Labor Statistics.

Texas has one of the top economies in the world. With a real Gross Domestic Product nearing $2 trillion, Texas GDP earns Texas the ranking of ninth largest economy in the world, and second largest in the US, behind California's $3.37 trillion, according to Austin Business Journal and PRNewswire.

Texas continues to lead the nation in an economic resurgence and remains one of the strongest and most diverse economies in the nation.

Texas' Economy Leads Among Top Performing States

In 2022, Texas' GDP reached $1.88 trillion (in chained 2012 dollars), falling second to California's $2.89 trillion economy. Texas accounted for 9.4% of the entire U.S. GDP that same year. Texas also displayed strong per capita and per worker economic indicators in 2022.

And as of 2022, Texas led the nation as home to the most Fortune 500 companies. Texans also enjoy a lower cost of living, 8% lower than the national average, according to Forbes. One reason is that housing is significantly more affordable in the Lone Star State.