Texas enters 2021 as world’s 9th largest economy by GDP
AUSTIN — Texas enters 2021 as the world’s ninth largest economy, proof of the success of a long-term strategy to make Texas the best place to start or relocate a business, said Robert Allen, President and CEO of the Texas Economic Development Corporation.
“This is more than just a statistic,” Allen said. “The fact that our state, if it were a nation, would be the world’s ninth largest economy shows that Texas is well positioned to outperform economically, regardless of the challenges that may lie ahead.”
TxEDC is an independently funded non-profit organization in partnership with the Governor’s Office of Economic Development and Tourism charged with marketing Texas as a premier business location, the cornerstone of Texas Gov. Greg Abbott’s economic development agenda.
“While 2020 brought unique challenges, Texas continued to shine as a beacon of hope and opportunity,” Abbott said. “Texas’ ranking as the world’s ninth largest economy is because of the hardworking men and women of the Lone Star State, our commitment to economic freedom, our state-of-the-art infrastructure and business climate. As we cultivate an environment of growth and opportunity, Texas will continue to build an even brighter future for all Texans.”
Since 2015, Texas has been recognized as the world’s 10th largest economy — ahead of Canada and South Korea and behind Brazil. Texas’s economy overtook Brazil’s to become the ninth largest economy in the world, according to 2019 GDP data from the International Monetary Fund.
Gross Domestic Product is a measurement of the size and strength of an economy. As of 2019, the United States has a GDP of $21.4 trillion, making it the world’s largest economy, followed by China, Japan and Germany, according to the IMF. Texas has a GDP of $1.9 trillion. Italy, with a GDP of $2 trillion, is in eighth place, and Brazil, with a GDP of $1.8 trillion, is 10th, according to the IMF ranking of global economies.
Texas is ranked first in the nation for its growth prospects, “thanks to strong employment and income growth forecasts for the next five years,” says a recent Forbes report.
In 2020, Amazon, CBRE, Tesla, HP and Oracle moved to or expanded their operations in Texas, which has further bolstered the strength and size of Texas’s economy. This trend is expected to continue in 2021, Allen said.
“Why come to Texas from other states? Our highly competitive tax climate, world-class infrastructure, a skilled workforce of 14 million people, business-friendly economic policies and abundant quality of life,” Allen said. “Texas obviously has a lot to offer. Our standing as the world’s ninth largest economy and our long-term expansion shows that Texas also offers rock-solid stability to companies that want to locate here.”