Texas' economic dominance continues, ranks No. 1 in U.S. in GDP growth

Texas, the ninth largest economy in the world, according to Gross Domestic Product (GDP), saw a 10.1% increase in the annual rate growth of real GDP in the last quarter of 2021 — compared to the national average of 6.9% — according to data from the Bureau of Economic Analysis released on March 31. GDP is a measure of the size and strength of an economy.

“This increase in GDP for Texas is consistent with other economic indicators that prove Texas is the best state in the nation to do business,” said Robert Allen, president and CEO of the Texas Economic Development Corporation, based in Austin.

In addition to the GDP increase, Texas was the No. 1 exporting state in the nation for 2021 — for the 20th consecutive year, according to data released by BEA in February 2022. Texas’ exports exceeded the exports of the next largest states, California, New York and Louisiana combined.

Texas overtook Brazil to become the ninth largest economy in the world — if Texas were a country — according to 2019 GDP data from the International Monetary Fund. Texas sustained its position in the rankings of global economies by GDP through the pandemic.