If Texas were an independent nation, its economy would rank as the eighth-largest in the world, surpassing economic giants like Russia, Canada, and Italy. With a nominal gross domestic product (GDP) of $2.7 trillion, Texas sits just behind the overall United States, China, Germany, and Japan when measured against global economies. Among U.S. states, Texas ranks second only to California and accounts for an impressive 9% of the total U.S. GDP. According to recent data compiled by the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis (BEA), California leads all U.S. states with a nominal GDP of $4.1 trillion, positioning it as the fourth-largest economy in the world. Meanwhile, Japan holds the fifth spot globally with a GDP of $4.02 trillion. Texas’ economic strength not only cements its role in the national economy but also highlights its growing influence on a global scale.

A major contributor to Texas’ economic muscle is its dominance in industries such as oil, gas, technology, and manufacturing. In 2024, the state's top revenue-generating industry was Gasoline and Petroleum Wholesaling, which generated $486.5 billion alone, according to IBIS World. This was followed closely by Oil Drilling and Gas Extraction ($225.9 billion) and Petroleum Refining ($225.2 billion). Other significant sectors included Gasoline and Petroleum Bulk Stations ($196.0 billion), Electronic Part and Equipment Wholesaling ($135.5 billion), and New Car Dealers ($134.2 billion). Even outside of the energy sector, Texas boasts thriving industries in real estate, banking, and healthcare, reflecting a diverse and resilient economic base.

Governor Greg Abbott’s office highlighted that Texas has been the top exporting state in the U.S. since 2001, accounting for approximately 22% of all U.S. exports. Texas has also led the nation in semiconductor exports for 14 years and technology exports for 12 years, underscoring the state’s growing reputation as a tech powerhouse alongside its traditional strength in energy.

U.S. States by GDP: Where Texas Stands Among Its Peers

Texas' economic prowess is even more impressive when viewed in the context of the broader United States. According to preliminary 2024 figures from the BEA, the largest state economies by nominal GDP are as follows:

• California: $4.1 trillion

• Texas: $2.7 trillion

• New York: $2.3 trillion

• Florida: $1.7 trillion

• Illinois: $1.1 trillion

• Pennsylvania: $1.02 trillion

• Ohio: $928 billion

• Georgia: $883 billion

• Washington: $855 billion

• New Jersey: $847 billion

Other notable states rounding out the top economic performers include North Carolina, Massachusetts, Virginia, Michigan, and Colorado, all with GDPs exceeding $500 billion.

Texas’ impressive GDP is fueled by a combination of factors, including a pro-business regulatory environment, no state income tax, and abundant natural resources. The state’s population boom, technological innovation, and significant infrastructure development have further solidified its standing as a global economic heavyweight. As Texas continues to expand its leadership in energy, technology, and manufacturing, its trajectory suggests it will remain a dominant force not just within the United States, but also on the global stage. With robust industry sectors, record-breaking exports, and a diversified economy, Texas is well-positioned to maintain and even strengthen its ranking among the world's largest economies in the years to come.