Texas Captured More of America’s Economic Growth Than Any Other State Over the Last 25 Years
State CAGR vs. Change in Share of US GDP, All 50 States and DC, 2000-2025 6.5% - Utah Outperformed US GDP
Texas Gross Domestic Product, 2000-2025
New analysis finds Texas uniquely combined large-scale economic growth with rapid expansion, while several state economies lost national share
AUSTIN, TX, UNITED STATES, June 4, 2026 /EINPresswire.com/ -- Texas increased its share of the U.S. economy more than any other state between 2000 and 2025, according to a new analysis of federal economic data released today by Texas 2036.
The report, “The Texas Economic Miracle,” finds Texas grew from producing 7.2% of U.S. GDP in 2000 to 9.4% in 2025, meaning nearly one out of every 10 dollars generated in the American economy now originates in Texas.
The report argues the state’s economic story is not simply about growth. It is about scale and velocity. Among the nation’s 10 largest state economies, Texas posted the fastest long-term growth rate over the past 25 years while also expanding its share of the national economy more than any other state.
“Texas’ growth story is unique when compared to other states, including large states such as California, New York and Florida,” said Jeremy Mazur, Director of Infrastructure and Natural Resources Policy at Texas 2036. “In simple terms, the Texas economy got bigger faster, accelerating the state’s importance to US growth and prosperity.”
Using U.S. Bureau of Economic Analysis data from 2000 to 2025, the report found Texas:
* Increased its share of U.S. GDP by 2.2 percentage points — the largest gain of any state
* Grew from the third-largest state economy to the second-largest
* Posted a 5.61% compound annual growth rate, the fastest among the 10 largest state economies
The report also found several large legacy economies, including Illinois, Ohio, Pennsylvania, and New York, lost shares of the national economy during the same period.
“The demographic shifts we are tracking in Texas, including slowing migration, an aging population and workforce composition changes, are the upstream forces that will weigh heavily on whether the state can maintain this economic trajectory,” said Tracy Ayrhart, Texas 2036 Vice President of Data and Research. “The numbers today are strong. Whether they stay that way depends on decisions Texas makes right now.”
Texas 2036 researchers argue the state’s growth has broad national implications because Texas now plays an increasingly outsized role in overall U.S. economic performance.
“Texas is not just growing, it is becoming an increasingly essential driver of the American economy,” said David W. Leebron, Texas 2036 President and CEO. “As a long-time Houstonian, I have found that sustained growth does not happen by accident. It requires deliberate, long-term investment in the infrastructure, workforce and systems that make prosperity possible. This report makes clear both how far Texas has come and how much is at stake in the decisions we make in the years ahead.”
The report concludes that sustaining Texas’ economic momentum will depend heavily on long-term investments in water infrastructure, electric reliability and workforce readiness as population and industrial growth continue.
The analysis examines aggregate GDP growth and state share of national GDP using U.S. Bureau of Economic Analysis data in current dollars from 2000 through 2025.
The full report and underlying data are available at https://texas2036.org/texasmiracle/.
Report author Jeremy Mazur is available for interviews and background conversations.
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About Texas 2036
Texas 2036 is a nonpartisan public policy organization dedicated to improving lives and opportunities for all Texans through 2036, Texas’ bicentennial year, and beyond.
Media Contacts:
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Email: media@texas2036.org
John Reynolds
Texas 2036
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