Download Economic Activity The Gross Domestic Product (GDP) by state is

About this Reference Document This document helps you understand and interpret a particular economic indicator that is part of the larger Outlook for the Texas Economy. Note that all data, charts, and explanations presented are from prior reports and thus are not current. Your feedback is always appreciated. Send comments and suggestions to [email protected]. Dr. Luis Torres and Wayne Day Economic Activity Real GDP Growth (Year-­‐over-­‐Year Percent Change)
Source: Bureau of Economic Analysis The Gross Domestic Product (GDP) by state is estimated by the Bureau of Economic Analysis (BEA). It provides a comprehensive measure of a state’s production reflecting the market value of all final goods and services produced within a state in a given period. The state GDP estimates are closely integrated with the national estimates of the annual industry accounts and the national input-­‐output (I-­‐O) accounts. They are consistent with national totals of the annual industry accounts and its components for all industries. The GDP by state is the sum of the gross domestic product originated in all industries in the state. An industry’s GDP by state, or value added, is equal to its gross output (sales or receipts and other operating income, commodity taxes, and inventory change) less the value of intermediate inputs (consumption of goods and services purchased from other U.S. industries or imported). It does not include compensation of federal civilian and military personnel stationed abroad and government consumption of fixed capital for military structures located abroad and for military equipment. The revisions schedules of the GDP by state, national GDP, and the annual industry accounts are different. The annual GDP by state series corresponds with estimates for 1963–97 for Standard Industrial Classification (SIC) industries and 1997-­‐2013 for North American Industry Classification (NAICS) industries. The data are revised and updated twice annually with benchmark revisions occurring approximately every five years, normally coinciding with major revisions in the BEA’s estimates of national GDP and GDP by industry. Annual variation in real GDP by state is used to estimate output growth also related to income growth. The rate of growth of the Texas economy vs. the U.S. economy has been greater since 2006, reflecting the strong performance of the state’s economy in comparison with the nation’s. From first quarter 2006 to fourth quarter 2013 the average annual growth rate for the Texas economy has been 3.5 percent, compared with 1.1 percent for the U.S. economy. The robust performance of the state’s economy has been a result of the strong energy and technology sectors, especially after the 2008 financial crisis, in addition to its export capabilities. Source: Bureau of Economic Analysis http://www.bea.gov/regional/pdf/gsp/GDPState.pdf