A study released the best and worst US economies. How does Texas rank?

America operates the largest economy in the world. In fact, many states’ economies outpace entire countries.

For example, California operates the fourth-largest economy in the world, outranking the whole country of Japan. Texas’ economy is up there as well, as the eighth-largest in the world. According to the Texas comptroller, Dallas Fort Worth’s economy of $708.9 billion is larger than Poland’s entire economy.

To determine which states have the best and worst economies, WalletHub pulled together a research study based on economic performance and strength.

“A strong state economy doesn’t guarantee success for the state’s residents, but it certainly makes financial success more attainable,” WalletHub lead analyst Chip Lupo wrote. “Factors like a low unemployment rate and high average income help residents purchase property, pay down debt and save for the future.”

Let’s see how Texas ranks and what factors contributed to its ranking.

WalletHub ranking of best and worst US state economies

WalletHub ranked all 50 states and the District of Colombia based on economic activity, economic health and innovation potential. To review their full methodology and sources, see here.

The top 10 best state economies are:

1. Massachusetts

2. Utah

3. Washington

4. California

5. New Hampshire

6. North Carolina

7. Idaho

8. Texas

9. Maryland

10. Colorado

The 10 worst state economies (1 being the least worst, 10 being the worst) are:

1. Wyoming

2. Nebraska

3. Mississippi

4. Alaska

5. Louisiana

6. South Dakota

7. North Dakota

8. Hawaii

9. West Virginia

10. Iowa

Why does Texas have a top 10 economy?

According WalletHub, Texas ranks No. 8 for best economy because of these factors:

• Texas is tied in first place with Louisiana and Kentucky for exports per capita.

• The state also has a high change in GDP (gross domestic product) which indicates a positive and booming economy.

• Texas ranks No. 11 for the amount of startup activity which is another positive indicator towards the economy.

• As well as a high annual median household income.

What do other studies say about the Texas economy?

For the sake of comparison, a study by the U.S. World and Report considers each state’s business environment, labor market and overall economic growth. Based on this, the list ranked Texas as having the No. 2 economy in the nation, behind No. 1 Florida.

And looking at the U.S. Bureau of Economic Analysis 2024 numbers, Texas is also ranked as No. 2, behind California for having the largest economy. California’s economy is worth around $4.1 trillion while Texas is $2.7 trillion. New York follows closely at $2.3 trillion.

Ella Gonzales

Fort Worth Star-Telegram

Ella Gonzales is a service journalism reporter for the Fort Worth Star-Telegram. She is part of a team of local journalists who answer reader questions and write about life in North Texas. Ella mainly writes about local restaurants and where to find good deals around town.