Texas is projected to continue expanding over the next five years despite uncertainty around inflation, workforce needs, energy markets and global trade.
Economist M. Ray Perryman’s outlook points to population growth, improving educational attainment and continued business investment as major factors supporting the state economy. Texas recently led the nation in numeric population growth, adding more than 391,000 residents from July 2024 to July 2025.
The state also continues to attract large job-creating business expansions. Data centers, financial services and other major investments are expected to shape local economies, though rapid development can also bring planning and infrastructure pressures.
The outlook remains positive overall, but the next several years are expected to require careful management of growth, workforce development, water resources and energy demand.
