The Lone Star State’s economy is booming, according to a new study by U.S. News & World Report.
Texas ranked No. 1 in the economy category, finishing ahead of states including Utah, Idaho and Arizona.
The report highlighted how the oil boom of the early 1900s transformed Texas from a largely rural region into a more industrialized state. Its population more than tripled, reaching about 9.6 million by 1960.
“Today, many of the state’s largest public companies are still in the oil industry. Other notable companies headquartered in Texas include AT&T, Southwest Airlines, Whole Foods and Dell,” U.S. News wrote in its report.
Texas’ diverse industrial base has attracted businesses and workers in recent decades. Austin, in particular, emerged as a major
technology hub beginning in the 1990s. Agriculture has also traditionally been one of the state’s largest industries, and Texas’ livestock industry remains among the largest in the country.
Gov. Greg Abbott has frequently touted Texas’ strong economy, including announcing in April 2026 that the state had reached a new milestone.
Data from the U.S. Bureau of Economic Analysis shows the Texas economy expanded to $2.9 trillion in 2025, up from $1.59 trillion when Abbott took office in January 2015, Abbott's office said in a news release.
“The Texas economy expanded to a record high of $2.9 trillion thanks to the productivity of our skilled workforce and the entrepreneurs and businesses investing here with confidence,” Abbott said. "Texas is the premier destination for job creators from across the country and world. We will keep attracting world-class investment, create jobs, and expand opportunity for Texans for generations to come.”
Here’s how Texas ranked in other categories included in U.S. News & World Report’s study.
- Crime & Corrections: No. 39
- Economy No. 1
- Education No. 27
- Fiscal Stability No. 7
- Healthcare No. 30
- Infrastructure No. 16
- Natural Environment No. 46
- Opportunity: No. 48
U.S. News and World Report took the scores of all these categories to create an overall ranking. Texas ranked No. 26 in its Best States Ranking.
Natassia Paloma may be reached at npaloma@gannett.com, @NatassiaPaloma on X, natassia_paloma on Instagram, and Natassia Paloma on Facebook.
This article originally appeared on El Paso Times: Study: Texas economy ranks No. 1 in nation. Here’s why
