Report: Lone Star State snags spot as world's 9th largest economy by GDP

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New study found that Texas has the 9th largest economy. Photo by gguy44/Getty Images

If Texas were a country — and plenty of Texans wish that were the case — it would rank among the world's 10 largest economies. Economic development officials are now touting that fact as evidence of Houston and the rest of Texas being a great place to start or relocate a business.

In a January 27 news release, the nonprofit Texas Economic Development Corp. noted that based on 2019 data from the International Monetary Fund, Texas would boast the world's ninth largest economy if it were a country. The news release lists the state's gross domestic product, or GDP — a key indicator of economic size and strength — as $1.9 trillion.

Texas' GDP would put it ahead of 10th-place Brazil ($1.8 trillion GDP, based on 2019 data from the International Monetary Fund) and behind eighth-place Italy ($2 trillion GDP), the economic development group says. Previously, Texas had ranked 10th for GDP when compared with countries.

If you dig deeper into the data, the competition between Texas and Brazil is even closer than the news release reveals. Texas' 2019 GDP stood at $1.844 trillion, giving it a razor-thin edge over Brazil ($1.839 trillion). Nonetheless, Texas beats Brazil in terms of economic strength.

It turns out that the Houston metro area contributes about one-fourth of Texas' GDP. In 2019, the region's GDP stood at $472.1 billion. The size of Houston's economy ranks seven among U.S. metro areas. If the Houston metro area were a state, it would rank 15th for GDP.

In the wake of last year's pandemic-clobbered economy, the Greater Houston Partnership predicts the region will add 35,000 to 52,000 net new jobs this year.

"The virus has dealt this region a significant blow, and the reality is it will take many months — if not years — to regain the jobs lost and repair the damage," Bob Harvey, president and CEO of the partnership, said in December. "We have our work cut out for us in growing our economy out of the hole it is currently in. But we are Houston and I believe we will recover. We will continue to work to make this a truly global city, one with a strong, diverse, 21st century economy that provides a great quality of life and opportunity for all."

While the pandemic has strained the state's economy as a whole, the International Monetary Fund estimates Texas should maintain the No. 9 spot for GDP in 2021 when stacked against countries. Texas would be wedged between No. 8 France ($2.1 trillion GDP) and No. 9 Canada ($1.76 trillion GDP). This year, the U.S. GDP is projected to remain the world's largest ($21.9 trillion), with China in second place (nearly $16.5 trillion).

"This is more than just a statistic. The fact that our state, if it were a nation, would be the world's ninth largest economy shows that Texas is well positioned to outperform economically, regardless of the challenges that may lie ahead," Robert Allen, president and CEO of the Texas Economic Development Corp., says in the release.

Allen's group cites the pending move of Hewlett Packard Enterprise's headquarters from Silicon Valley to the Houston suburb of Spring as one factor demonstrating the power of Texas' economy.

"Why come to Texas from other states? Our highly competitive tax climate, world-class infrastructure, a skilled workforce of 14 million people, business-friendly economic policies, and abundant quality of life," Allen says. "Texas obviously has a lot to offer. Our standing as the world's ninth largest economy and our long-term expansion shows that Texas also offers rock-solid stability to companies that want to locate here."

A oil and gas CEO, a serial entrepreneur, and a retail energy exec walk into the state capital. Getty Images

3 powerhouse Houstonians named to the state's economic development board

Three's company

The Bayou City now wields some high-profile power in the state's economic development efforts.

The Texas Senate recently endorsed Gov. Greg Abbott's appointment of three business leaders with strong ties to Houston to the board of the Texas Economic Development Corp. — including the organization's new chair and vice chair.

Robert Allen, president and CEO of Texas' nonprofit economic development arm, says the Bayou City should feel well-represented on the board with former Houston Astros owner Drayton McLane as the new chair, Houston energy executive Vicki Hollub as the new vice chair, and Houston energy executive Scott Prochazka as a new member. That means Houston-connected business leaders hold three of the board's eight seats.

Allen calls McLane "the perfect Texas ambassador."

McLane, who lives in Temple, sold the Astros to Houston businessman Jim Crane in 2011 for $680 million. Forbes estimates McLane's net worth at $2.4 billion.

Today, McLane controls a Temple-based holding company with business interests such as food distribution, car dealerships and sports marketing. In 1991, he sold grocery distributor McLane Co. to Walmart, which later sold it to Warren Buffett's Berkshire Hathaway.

"I can think of no one better to lead our efforts to market the state of Texas as the best state for business than Drayton McLane. He has achieved tremendous success in several areas of business, all while calling Texas home," Allen tells InnovationMap.

McLane also chairs the board of Texas Central Partners, the Dallas company developing high-speed rail service between Houston and Dallas-Fort Worth. In addition, he serves on the boards of the George H.W. Bush Presidential Library Foundation, Baylor Scott & White Healthcare, and the Cooper Institute.

"I am privileged to be able to give service to our great state of Texas and honored by Gov. Abbott's appointment as chair of the Texas Economic Development Corporation," McLane says in a statement provided to InnovationMap.

"The goal of the corporation is to help market Texas as a place for businesses to grow and prosper," he adds. "Texas is a great state, and we have much to offer businesses in many sectors. I care deeply for Texas and improving the economy that will carry us into the future."

Hollub, president and CEO of Houston-based oil and gas company Occidental Petroleum, is the new vice chair of the Texas Economic Development Corp. She's spent 35 years at Occidental, which just hammered out a $57 billion deal to take over Anadarko Petroleum, an oil and gas company based in The Woodlands.

In addition to the board of the Texas Economic Development Corp., Hollub sits on the boards of Lockheed Martin and the American Petroleum Institute, and she is U.S. chair of the U.S.-Colombia Business Council.

"As the first female to head a major oil and gas company in the world, Vicki defines what it means to be a Texan — hardworking, determined, and incredibly smart," Allen says.

Prochazka, president and CEO of CenterPoint Energy, a Houston-based provider of electric and natural gas service, joins McLane and Hollub on the board of the Texas Economic Development Corp. Aside from his duties at CenterPoint, Prochazka is incoming chairman of the American Gas Association, chairman of Central Houston Inc., and a board member of the Greater Houston Partnership.

Given his roles with Central Houston Inc. and the Greater Houston Partnership, Prochazka knows Houston "intimately well," Allen says.

The Texas Economic Development Corp. is an independently funded and operated nonprofit that promotes economic development, business recruitment, and job creation in Texas. For instance, the nonprofit helped pave the way for a $15 billion liquefied natural gas (LNG) export facility in Corpus Christi that recently made its first cargo shipment. Houston-based Cheniere Energy owns the facility.

With Abbott's appointment of eight members, the makeup of the economic development organization's eight-member board is entirely new. The governor appointed them in April, but the state Senate had to give its final approval, which came earlier this month.

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U.S. News names 5 Houston suburbs as the best places to retire in 2026

Retirement Report

Houston-area suburbs should be on the lookout for an influx of retirees in 2026. A new study by U.S. News and World Report has declared The Woodlands and Spring as the fourth and fifth best cities to retire in America, with three other local cities making the top 25.

The annual report, called "250 Best Places to Retire in the U.S. in 2026" initially compared 850 U.S. cities, and narrowed the list down to a final 250 cities (up from 150 previously). Each locale was analyzed across six indexes: quality of life for individuals reaching retirement age, value (housing affordability and cost of living), health care quality, tax-friendliness for retirees, senior population and migration rates, and the strength of each city's job market.

Midland, Michigan was crowned the No. 1 best place to retire in 2026. The remaining cities that round out the top five are Weirton, West Virginia (No. 2) and Homosassa Springs, Florida (No. 3).

According to U.S. News, about 15 percent of The Woodlands' population is over the age of 65. The median household income in this suburb is $139,696, far above the national average median household income of $79,466.

Though The Woodlands has a higher cost of living than many other places in the country, the report maintains that the city "offers a higher value of living compared to similarly sized cities."

"If you want to buy a house in The Woodlands, the median home value is $474,279," the city's profile on U.S. News says. "And if you're a renter, you can expect the median rent here to be $1,449." For comparison, the report says the national average home value is $370,489.

Spring ranked as the fifth best place to retire in 2026, boasting a population of more than 68,000 residents, 11 percent of whom are seniors. This suburb is located less than 10 miles south of The Woodlands, while still being far enough away from Houston (about 25 miles) for seniors to escape big city life for the comfort of a smaller community.

"Retirees are prioritizing quality of life over affordability for the first time since the beginning of the COVID-19 pandemic," said U.S. News contributing editor Tim Smart in a press release.

The median home value in Spring is lower than the national average, at $251,247, making it one of the more affordable places to buy a home in the Houston area. Renters can expect to pay a median $1,326 in monthly rent, the report added.

Elsewhere in Houston, Pearland ranked as the 17th best place to retire for 2026, followed by Conroe (No. 20) and League City (No. 25).

Other Texas cities that ranked among the top 50 best places to retire nationwide include Victoria (No. 12), San Angelo (No. 28), and Flower Mound (No. 37).

The top 10 best U.S. cities to retire in 2026 are:

No. 1 – Midland, Michigan
No. 2 – Weirton, West Virginia
No. 3 – Homosassa Springs, Florida
No. 4 – The Woodlands, Texas
No. 5 – Spring, Texas
No. 6 – Rancho Rio, New Mexico
No. 7 – Spring Hill, Florida
No. 8 – Altoona, Pennsylvania
No. 9 – Palm Coast, Florida
No. 10 – Lynchburg, Virginia

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This article originally appeared on CultureMap.com.

Micro-nuclear reactor to launch at Texas A&M innovation campus in 2026

nuclear pilot

The Texas A&M University System and Last Energy plan to launch a micro-nuclear reactor pilot project next summer at the Texas A&M-RELLIS technology and innovation campus in Bryan.

Washington, D.C.-based Last Energy will build a 5-megawatt reactor that’s a scaled-down version of its 20-megawatt reactor. The micro-reactor initially will aim to demonstrate safety and stability, and test the ability to generate electricity for the grid.

The U.S. Department of Energy (DOE) fast-tracked the project under its New Reactor Pilot Program. The project will mark Last Energy’s first installation of a nuclear reactor in the U.S.

Private funds are paying for the project, which Robert Albritton, chairman of the Texas A&M system’s board of regents, said is “an example of what’s possible when we try to meet the needs of the state and tap into the latest technologies.”

Glenn Hegar, chancellor of the Texas A&M system, said the 5-megawatt reactor is the kind of project the system had in mind when it built the 2,400-acre Texas A&M-RELLIS campus.

The project is “bold, it’s forward-looking, and it brings together private innovation and public research to solve today’s energy challenges,” Hegar said.

As it gears up to build the reactor, Last Energy has secured a land lease at Texas A&M-RELLIS, obtained uranium fuel, and signed an agreement with DOE. Founder and CEO Bret Kugelmass said the project will usher in “the next atomic era.”

In February, John Sharp, chancellor of Texas A&M’s flagship campus, said the university had offered land at Texas A&M-RELLIS to four companies to build small modular nuclear reactors. Power generated by reactors at Texas A&M-RELLIS may someday be supplied to the Electric Reliability Council of Texas (ERCOT) grid.

Also in February, Last Energy announced plans to develop 30 micro-nuclear reactors at a 200-acre site about halfway between Lubbock and Fort Worth.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

Houston falls from top 50 in global ranking of 'World's Best Cities'

Rankings & Reports

Houston is no longer one of the top 50 best cities in the world, according to a prestigious annual report by Canada-based real estate and tourism marketing firm Resonance Consultancy.

The newest "World's Best Cities" list dropped Houston from No. 40 last year to No. 58 for 2026.

The experts at Resonance Consultancy annually compare the world's top 100 cities with metropolitan populations of at least 1 million residents or more based on the relative qualities of livability, "lovability," and prosperity. The firm additionally collaborated with AI software company AlphaGeo to determine each city's "exposure to risk, adaptation capacity," and resilience to change.

The No. 1 best city in the world is London, with New York (No. 2), Paris (No. 3), Tokyo (No. 4), and Madrid (No. 5) rounding out the top five in 2026.

Houston at least didn't rank as poorly as it did in 2023, when the city surprisingly plummeted as the 66th best city in the world. In 2022, Houston ranked 42nd on the list.

Despite dropping 18 places, Resonance Consultancy maintains that Houston "keeps defying gravity" and is a "coveted hometown for the best and brightest on earth."

The report cited the Houston metro's ever-growing population, its relatively low median home values ($265,000 in 2024), and its expanding job market as top reasons for why the city shouldn't be overlooked.

"Chevron’s shift of its headquarters from California to Houston, backed by $100 million in renovations, crowns relocations drawn by record 2024 Port Houston throughput of more than four million containers and a projected 71,000 new jobs in 2025," the report said.

The report also draws attention to the city's diversity, spanning from the upcoming grand opening of the long-awaited Ismaili Center, to the transformation of several industrial buildings near Memorial City Mall into a mixed-use development called Greenside.

"West Houston’s Greenside will convert 35,000 square feet of warehouses into a retail, restaurant and community hub around a one-acre park by 2026, while America’s inaugural Ismaili Center remains on schedule for later this year," the report said. "The gathering place for the community and home for programs promoting understanding of Islam and the Ismaili community is another cultural jewel for the country’s most proudly diverse major city."

In Resonance Consultancy's separate list ranking "America's Best Cities," Houston fell out of the top 10 and currently ranks as the 13th best U.S. city.

Elsewhere in Texas, Austin and Dallas also saw major declines in their standings for 2026. Austin plummeted from No. 53 last year to No. 87 for 2026, and Dallas fell from No. 53 to No. 78.

"In this decade of rapid transformation, the world’s cities are confronting challenges head‑on, from climate resilience and aging infrastructure to equitable growth," the report said. "The pandemic, long forgotten but still a sage oracle, exposed foundational weaknesses – from health‑care capacity to housing affordability. Yet, true to their dynamic nature, the leading cities are not merely recovering, but setting the pace, defining new paradigms of innovation, sustainability and everyday livability."

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