Texas has the Eighth-strongest state economy, according to a new WalletHub report. The report compared the 50 states and the District of Columbia across 28 metrics, ranging from GDP growth and the unemployment rate to startup activity and the share of jobs in high-tech industries.
Some states contribute a lot more to the U.S. economy than others. For example, California, Texas, New York and Florida have economies so large that if they were countries, they would rank in the top 20 in the world. Living in one of these states might help boost your financial prospects.
“A strong state economy doesn't guarantee success for the state's residents, but it certainly makes financial success more attainable,” said WalletHub analyst Chip Lupo. “Factors like a low unemployment rate and high average income help residents purchase property, pay down debt and save for the future. The best state economies also encourage growth by being friendly to new businesses and investing in new technology that will help the state deal with future challenges and become more efficient.”
People are also reading…
In-Depth Look at Texas
Texas's economy is strong in part because its businesses are growing fast and producing valuable commodities. The number of small businesses in the state is growing at the second-fastest rate in the country. Texas also has the second-most valuable exports per capita.
Some parts of Texas's economy are weaker, though. For example, the state has the lowest percentage of the population with health insurance coverage. In addition, it ranks 41st for the foreclosure rate.
How Texas Ranks in Key Categories
- Seventh for economic activity
- 11th for economic health
- 24th for its innovation potential
Overall, Texas ranks eighth in the country in WalletHub's study.
Best State Economies
Overall Rank | State | Total Score | Economic Activity Rank | Economic Health Rank | Innovation Potential Rank |
1 | Massachusetts | 69.37 | 5 | 37 | 1 |
2 | Washington | 67.34 | 8 | 18 | 2 |
3 | Utah | 65.88 | 3 | 4 | 12 |
4 | California | 64.98 | 2 | 49 | 3 |
5 | Delaware | 63.04 | 1 | 27 | 10 |
6 | North Carolina | 60.25 | 9 | 8 | 9 |
7 | New York | 57.58 | 4 | 31 | 22 |
8 | Texas | 56.95 | 7 | 11 | 24 |
9 | Colorado | 56.42 | 15 | 24 | 5 |
10 | Florida | 54.26 | 6 | 19 | 29 |
The methodology can be found on the full version of the article on WalletHub.
