A recent report issued by BBVA Compass bank has determined that Texas is poised to lead the country to its economic recovery.
There are many reasons why the Lone Star State is in position to lead the country toward recovery, with oil prices being among them. Other reasons include the fact that the state has enjoyed a relatively stable housing market as well as limited fiscal challenges. The state has also continued to add private jobs to its market while its exports, particularly coal and petroleum products, have remained strong. In short, Texas has managed to remain relatively positive while most states have experienced a decline in growth.
According to the report, Texas is likely to enjoy a 2.8 percent growth in its gross domestic product this year. This is well above the projected national growth of 2.3 percent this year. Last year, Texas created 182,200 private sector jobs, which accounts for approximately 16 percent of the total number of private sector jobs in the country. Austin alone added about 2,700 private sector jobs from October of 2009 through September of 2010. Furthermore, the capital city added 17,300 private sector jobs last year.
Fiscally speaking, the state of Texas has the 16th lowest projected state deficit out of 46 states, with the projected budget deficit for 2010 being approximately 10 percent. Nonetheless, the report found that Texas is likely to emerge from its deficit with little difficulty. This is largely due to the fact that the state has a relatively large rainy day fund combined with stable home prices.