Data: Texas’ economy grows by 3.5%

Karoline Leonard

Austin American-Statesman

USA TODAY NETWORK

Texas’ economy continues to grow rapidly, outpacing the nation in the fourth quarter of 2024.

According to data from the U.S. Bureau of Economic Analysis, Texas’ real gross domestic product (GDP) grew at an annual rate of 3.5% in the fourth quarter of 2024, compared to the U.S. average of 2.4%. GDP represents the total value of all goods and services produced within the state over a specific period.

Preliminary current dollar GDP estimates show Texas’ economy grew to an estimated $2.7 trillion, up from $2.6 trillion in 2023.

'It is hardworking Texans who power our booming and growing economy,' Texas Gov. Greg Abbott said in a release about the data Monday. 'Year after year, we continue to lead the nation in job creation, in business location and expansion projects, and in innovation across diverse industries. With more Texans working today than ever in the history of our great state, we will build on this momentum for a stronger, more prosperous Texas.'

In the report, GDP increased in 48 states and Washington, D.C., in the fourth quarter of 2024, with Arkansas growing the most by 5.1%. Personal income increased in all 50 states and D.C., with Texas’ growing by 3.9%, less than the national rate of 4.6%.

In January and February, Texas continued to lead the nation in job creation and broke all previous records for total jobs, number of Texans working and the size of the Texas labor force.

Abbott also announced Monday that he was awarding $7.87 million to DSM Semichem LLC through the Texas Semiconductor Innovation Fund, which was established by the Texas CHIPS Act in 2023. The funding, which is the sixth allotment of the innovation fund, will go toward DSM’s expansion of their materials and chemicals facility in Plainview. DSM’s total capital investment in its Plainview facility, including the new funding, is $176 million and is expected to create 40 new jobs.

DSM is a joint venture between Dongjin USA, Samsung C&T America and Martin ELSA Investment LLC and specializes in producing a highly pure form of sulfuric acid necessary in the manufacturing process for chips.

'Texas is making strategic investments to ensure the stability of critical domestic supply chains for the technologies that fuel our economy. ...,' Abbott said in the Monday announcement. 'By working together to meet the rising demand for chip production, Texas will continue to lead the nation as we build a stronger, more prosperous Texas than ever before.'