The World's 8th Largest Economy
Workforce to industry base, Texas’ sheer size makes it an unrivaled powerhouse in the global economy.
In fact, if it were a country, Texas would be the 8th largest economy in the world, ahead of Australia, Italy, Mexico, Russia and Spain. Companies continue to move to the Lone Star State to tap into the nation’s second-largest civilian workforce of more than 15 million, world-class infrastructure with international access by land, sea and air, and more. It’s no wonder that Texas is the leading state for GDP, exports, population growth and job creation.
Texas Economy Ranking
Texas economic growth ranks first in the nation, “thanks to strong employment and income growth forecasts for the next five years,” according to Forbes Magazine.
The positive outlook for long-term Texas economic strength is the result of many factors:
- Investment in workforce education — Texas is home to more than 300 trade schools and 125 technical programs. Innovative proposals like the Texas Reskilling & Upskilling through Education (TRUE) program aim to put $50 million into Texas community colleges to train the workforce for high-demand sectors.
- Business reputation — Texas supports companies large and small. More than 100 of the 1,000 largest public and private companies in the United States are based in Texas — such as Dell, ExxonMobil, Sysco, Oracle, Amazon, HPE and Tesla. Another 3 million small businesses sustain our powerful economy.
- Natural resources — While it’s true Texas produces more than 40% of America’s oil and nearly a quarter of the nation’s natural gas, it is also the top-producing state for wind energy and the second-largest state for solar.
- Entrepreneurship — Texas has the fourth-highest rate of new entrepreneurs, according to reports by the Kauffman Foundation, with 410 out of 100,000 adults starting a new business in the state.
Why Is the Texas Economy So Good?
A state economy is only as good as its ability to deliver its products to the world. The vast infrastructure in Texas ensures the state remains a leading exporter. Texas offers the largest transportation network in the nation, comprised of more than 313,200 miles of public roads, 10,400 miles of rail, 380 airports, and 16 seaports.
Texas Economic Outlook
The Texas economic outlook is favorable based on the robustness of its industry sectors. Beyond energy, the many progressive sectors thriving in Texas ensure strength for decades to come.
According to the Office of the Texas Governor, these are the target industry clusters:
- Advanced Manufacturing
- Aerospace, Aviation and Defense
- Biotechnology and Life Sciences
- Corporate Services
- Creative Industry
- Information Technology
- Petroleum Refining and Chemical Products
Texas continues to shine as a beacon of hope and opportunity. The Lone Star State’s success is due to its skilled and dedicated workforce, its commitment to economic freedom, state-of-the-art infrastructure, and thriving business climate.
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