Texas economy faring better in economic storm

The Texas economy likely will avoid many of the economic woes experienced in other parts of the country, according to the Federal Reserve Bank of Dallas' publication, Southwest Economy.

The state will experience below-average economic growth in 2008, but it will still outpace the nation, economist Fiona Sigalla says in an article titled "Texas Finds Cover From U.S. Economic Storm." Job growth in Texas should run near 2 percent in 2008.

"A Texas recession isn't in the forecast," Sigalla says. "A relatively low cost of living continues to attract firms and residents to the state, and an economy that is more globally integrated than in other states boosts demand for Texas products and services."

Texas is also one of the few states that benefits from high energy prices, Sigalla says, plus, construction doesn't appear to be too far ahead of demand.

Business economist D'Ann Petersen writes in the article, "Hot Housing Market Catching Cold in Texas," that a weakening Texas housing market still remains healthier than the national average.

"In the longer term, Texas' location and cost advantages, fast-growing population and relatively buoyant economy put the state's housing industry in a strong position to respond when demand turns the corner," Petersen said, adding that tighter inventories should shield the Texas housing market from large price declines found in other areas of the country.

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