Texas Is Resistant But Not Immune to Recession, Expert Says

Texas won't be immune to the economic woes affecting the rest of the country, but it will do better than most of the states, said Bernard Weinstein of the Center for Economic Development and Research at the University of North Texas.

Weinstein delivered the keynote luncheon address yesterday at The Bond Buyer's 13th Annual Public Finance Conference. He said the state would be insulated from the worst affects of what he called "The Great Recession of 2008-2010" because of the rapid growth of its major metropolitan areas over the last two decades.

The Dallas area grew by 54% between 1990 and 2008, Weinstein said, with Houston experiencing a population growth of 49.4% in the same period.

"We have a certain momentum in this state as a result of this rapid growth," he said. "Growth creates demand for housing and retail and services."

Challenges to the Texas economy include falling energy prices, a drop in national defense spending, a worldwide decline in demand for information technology services and products, and lower U.S. exports.

"The best place to ride out the recession of 2008-2010 is right here in Texas," Weinstein said. "The bullet is going to hit us. We're going to feel some pain, but not as much as in the rest of the states.

"Somehow, we're going to muddle through this mess."

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