The Data Behind Texas’ Economic Miracle
This is a preview of our Texas 2036 newsletter providing a look inside our latest report, “The Texas Economic Miracle.” To receive this weekly look at our work, sign up here.
The Texas Economic Miracle
Over the last 25 years, every state economy grew. But everything is bigger in Texas.
Texas increased its share of the U.S. economy more than any other state, rising from the nation’s third-largest economy to the second-largest.
A new Texas 2036 report, The Texas Economic Miracle, explores how Texas achieved both a magnitude and velocity of economic growth better than any other large state economy and what it will take to sustain that momentum in the decades ahead.
What’s the “Texas Miracle?” Learn more.
Texas Miracle: By the Numbers
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Texas did more than grow. It gained ground.
No other large state economy grew faster than Texas over the past 25 years or increased its share of the national economy in the process.
While Texas expanded its contribution to the U.S. economy, several large state economies, including Illinois, Ohio, Pennsylvania and New York, lost ground.
What the data shows
- 💰 Texas increased its share of U.S. GDP by 2.2 percentage points, the largest gain of any state. Today, nearly one out of every 10 dollars generated in the American economy comes from Texas.
- 💵 Texas rose from the third-largest state economy to the second-largest.
- 📈 Texas GDP nearly quadrupled since 2000, expanding by 291% since the 21st century began.
- ⬆️ Texas recorded the fastest growth rate out of the nation’s 10 largest state economies.
Meet the Author: Jeremy Mazur
Texas 2036’s Director of Infrastructure and Natural Resources Policy Jeremy Mazur directs our team’s work in the area of infrastructure and natural resources, which includes water, energy and resilience.
Check Out Jeremy’s report 👇
The Texas Economic Miracle is a Texas 2036 analysis that explains how our state became an increasingly important driver of American prosperity.
📺 Watch Jeremy break down his report findings on the Texas Economic Miracle.
“Sustained growth does not happen by accident. It requires deliberate, long-term investment in the infrastructure, workforce and systems that make prosperity possible.”
– David W. Leebron, President & CEO, Texas 2036
Sustaining the Texas Miracle
10 Largest State Economies (by 2025 GDP), Ranked by Compound Annual Growth Rate (CAGR), 2000-2025
Source: U.S. Bureau of Economic Analysis
The Texas Economic Miracle was built during a period of extraordinary growth. But some of the forces shaping that growth are beginning to change.
For years, Texas benefited from a steady influx of workers, entrepreneurs and families. Today, migration is slowing, the workforce is aging and growth is increasingly concentrated along the edges of the state’s major metro areas.
These demographic shifts could reshape how Texas grows in the decades ahead, influencing everything from labor force participation to where new housing, infrastructure and services are needed most.
“These are the upstream forces that will weigh heavily on whether Texas can maintain its economic trajectory. The numbers today are strong. Whether they hold is what we’re watching.”
– Dr. Tracy Ayrhart, Vice President of Data and Research, Texas 2036
Looking Ahead to 2027
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The decisions shaping Texas’ next 25 years are already underway. They are happening now in interim hearings, agency planning, infrastructure debates and budget discussions that will help frame the 2027 legislative session.
Texas 2036 will continue tracking the economic, demographic, infrastructure and workforce trends shaping the state’s future, providing lawmakers and Texans with the long-range data needed to make informed decisions in the years ahead.
How Texas responds will help determine whether it can sustain another generation of growth.
What Are You Seeing Across Texas?
From housing and workforce trends to infrastructure and economic development, communities are experiencing change in different ways.