Texas' GDP grew 6.4% in 2nd quarter of 2021

The U.S. Bureau of Economic Analysis (BEA) recently reported that Texas' GDP grew in the second quarter of 2021.

Texas' gross domestic product rose by 6.4% in the second quarter of 2021, contributing to the overall increase in national GDP of 6.7%, according to the recently released BEA Gross Domestic Product by State, 2nd Quarter 2021 report.

In the second quarter of 2021, real gross domestic product (GDP) increased in all 50 states and the District of Columbia, according to BEA.

"The increase in second quarter GDP by state estimates reflected the continued economic recovery, reopening of establishments, and continued government response related to the COVID-19 pandemic," according to BEA. "In the second quarter, government assistance payments in the form of loans to businesses and grants to state and local governments increased, while social benefits to households, such as the direct economic impact payments, declined." 

BEA reports that growth in accommodation and food services; information; and professional, scientific, and technical services led to the increase in GDP. Other highlights included, the information industry increased 25.2% nationally and was the leading contributor in Washington, California, and New York. Professional, scientific, and technical services increased 15.3%. 

Across all states, increases were somewhat offset by retail trade, which decreased 14.7% nationally.

GDP statistics provide for analyzing trending economic information to assist the decision-making process of federal and state governments. The use of the statistics in forecast modeling help inform the projection of tax revenues and public services needs. Businesses use the statistics for market research.

The next BEA report will be released on Dec. 23, 2021.