The high rates of growth of the past two years are hard to maintain even as the national economy is in its eighth year of expansion. Weaker export markets have slowed the economy as well. In the first half of 1999, the number of Texas jobs grew 2.8 percent, down from 3.8 percent in 1998 and 4.2 percent in 1997. The real gross state product is expected to grow by 5.4 percent, nearly matching 1998's 5.5 percent. That steadiness is a result of the lowest sustained inflation rate since the 1960s and productivity gains brought on by increased use of technology.
Industry analysts expect Texas oil and gas production to continue declining.
Over the next 20 years, the industry's contribution to the state economy, as measured by the gross state product, should erode from 12 percent today to around 8 percent. Cooling off Builders have benefited from Texas' recent boom. Construction employment rose to about 524,000 in April 1999 from about 376,000 in April 1994, an increase of nearly 40 percent. Nonresidential construction exceeded 157 million square feet in 1998, the highest level since 1985. The Comptroller's office, however, is forecasting slowed growth for the construction industry.