Texas grew faster than every major state economy over the past 25 years, expanding its share of the U.S. economy more than any other state. New Texas 2036 analysis explains how Texas became an increasingly important driver of American prosperity.
Key Findings
- Texas increased its share of U.S. GDP by 2.2 percentage points, the largest gain of any state.
- Texas posted a 5.61% compound annual growth rate, the fastest among the nation’s largest economies.
- Nearly 1 in every 10 dollars generated in the American economy now originates in Texas.
Texas Didn’t Just Grow. It Outpaced the Nation.
Every state economy grew between 2000 and 2025. Texas was different.
Texas’ economy nearly quadrupled between 2000 and 2025, growing from $742 billion to $2.9 trillion and rising from the nation’s third-largest state economy to the second-largest.
Texas Grew Faster, Gained More Economic Influence Than Any Other State
No other large state economy grew faster than Texas over the past 25 years or claimed more of the national economy in the process.
Several large states—including Illinois, Ohio, Pennsylvania and New York—lost share of the U.S. economy during the same period. Texas moved in the opposite direction, growing larger, faster and more economically influential.
This combination of magnitude and velocity of economic growth makes the Texas Economic Miracle unique.
Methodology
This analysis examines U.S. Bureau of Economic Analysis data from 2000–2025, comparing Texas’ economic performance with other large state economies and the nation as a whole.
The report evaluates two core measures:
- Magnitude: How much Texas’ economy grew.
- Velocity: How quickly Texas grew compared with peer states and the national economy.
About the Author
Jeremy B. Mazur directs Texas 2036’s work in the area of infrastructure and natural resources, which includes water, energy, and resilience.