Texas saw twice as much growth as the rest of the nation in the second quarter of 2023.
The Texas economy grew by nearly 5% in the second quarter of 2023, outpacing the rest of the nation for the fourth quarter in a row, according to the latest Gross Domestic Product (GDP) data by state from the Bureau of Economic Analysis.
Texas’s real GDP — the inflation-adjusted value of all goods and services produced in the state — expanded at an annual rate of 4.9%, well ahead of the U.S.’s increased annual rate of 2.1% during the quarter.
On Thursday, Texas Gov. Greg Abbott celebrated the data and the state’s continuing economic momentum.
“Opportunity knows no bounds in Texas thanks to the hardworking men and women of this great state,” he said in a statement. “Texas’ continuing economic expansion, well ahead of the United States as a whole for the fourth quarter in a row, is further proof that when given the freedom to aspire, businesses invest and people prosper. Together, we continue to build a bigger, bolder Texas of tomorrow.”
As the eighth-largest economy in the world, Texas is not only an economic powerhouse but also an “energy powerhouse,” according to the Federal Reserve Bank of Dallas.
“If Texas, an energy powerhouse, were a country, it would rank third globally in crude oil and in natural gas production. Also dominant in downstream energy, Texas produces 30% of the nation’s gasoline and 75% of its petrochemicals. Texas also rules renewables,” wrote Dallas’ Federal Reserve Bank senior business economist Jesse Thompson and Keighton Hines, statistics programmer and analyst.
The Texas economy is also a growing business hub. In April, Texas was named the Best State for Business for a record-shattering 19th year in a row, according to an annual survey conducted by Chief Executive Magazine.
“Texas is attractive to CEOs and their businesses because we offer the freedom and opportunity that cannot be found elsewhere: no state income tax; a stable, predictable regulatory structure; and a young, educated, and growing workforce ready to take on the jobs of tomorrow,” said Gov. Abbott about the achievement earlier this year.