RECON – According to new data from the Commerce Department, Texas was America’s second fastest growing economy last year, growing by 5.2 percent, behind only North Dakota.
In “Is Texas America’s best state economy,” CNN Money writes that Texas is producing textiles, food and more, and real estate and tech picked up pace in the state, too. However, mining was the leading cause for growth in the Southwest last year, especially in Texas and Oklahoma.
Despite last year’s drop in oil prices, Texas kept growing, its GDP jumping significantly from 3.7 percent in 2013.
“Although oil prices plummeted in 2014, the negative effects took some time to materialize and have been more noticeable in 2015,” wrote Wells Fargo Economist Michael Wolf. He also noted employment in Texas is showing signs of slowing this year.
Still, three of the top five fastest growing U.S. cities are in Texas, as many Americans are gravitating to the affordable housing and ample job opportunities the state is offering.
According to the Bureau of Labor Statistics, Texas’ unemployment level is 4.3 percent, lower than the national level of 5.5 percent and the best among large states.
“Some of the more recent strength reflects the diversity of the state’s economy. The state’s tech sector has ballooned and its transportation industry is growing quickly,” wrote Wolf. However, he expects softer growth for 2015. “We do not think that the state will see a contraction this year, but real GDP growth will be much lower than the 5.2 percent rate seen in 2014.”
This article originally published on Real Estate Center Online News and is reprint with full permission