After using excessive among the many high 5 greatest state economies in 2024, Texas’ sturdy economic system could also be exhibiting some cracks. Texas now ranks because the state with the eighth greatest economic system, 4 spots decrease than final 12 months’s rating, based on a brand new WalletHub report.
WalletHub’s specialists ranked all 50 states and the District of Columbia throughout 28 metrics to measure every state’s financial exercise and well being and its “innovation potential.”
Massachusetts moved up two spots from final 12 months to assert the No. 1 greatest state economic system title for 2025, adopted by Utah (No. 2) and Washington (No. 3). Texas was surpassed by No. 4-ranking California, in addition to New Hampshire (No. 5), North Carolina (No. 6), and Idaho (No. 7).
That is how Texas fared throughout the three main classes within the research:
- No. 4 – Financial exercise (down from No. 2)
- No. 11 – Financial well being (down from No. 7)
- No. 24 – Innovation potential (unchanged)
Texas ranked No. 1 with essentially the most exports per capita in a three-way tie with Louisiana and Kentucky, the report discovered.
WalletHub analyst Chip Lupo says the states which have the perfect economies are sometimes those who put money into new companies, expertise, and extra. The report additionally suggests low unemployment charges and excessive wages are among the many many elements that may assist Texas residents achieve success whereas additionally boosting the state economic system.
“A powerful state economic system doesn’t assure success for the state’s residents, nevertheless it definitely makes monetary success extra attainable,” Lupo mentioned.
The states with the worst economies in 2025, based on WalletHub, are Hawaii (No. 49), West Virginia (No. 50), and Iowa (No. 51).
