The Perryman Group, an economic and financial analysis firm led by noted economist Dr. M. Ray Perryman, recently released its annual Texas Economic Forecast report. Perryman’s most recent projections indicate that the state economy is set to continue its upward trend.
Looking ahead, growth in the Texas economy is projected to outpace the nation over the next five years. Real gross product is projected to increase at a 2.89% annual pace through 2022, reaching a level of $19.3 trillion. About 11.7 million net new jobs are also expected to be gained over the period, a 1.55% annual rate of growth.
For the state, the expansion pace will be even faster. The Perryman Group is forecasting that the Texas population will grow by about 2.1 million between 2017 and 2022, reaching 30.5 million. Almost 1.4 million net new jobs are projected to be added, representing a 2.05% annual rate of growth over the five-year period. Services industries will drive job gains, with net new jobs concentrated in health care. Wholesale and retail trade businesses are also likely to see notable hiring.
Real gross product in all major industry groups is projected to expand through 2022, with the services, mining, trade, and manufacturing segments likely to experience the largest growth. Real gross product is forecast to expand at a 4.01% rate over the period, with the mining sector (largely oil and natural gas in Texas) leading the way with 6.15% yearly growth expected over the next five years.