Texas economy has grown during 2008

The economic outlook for Texas in 2008, pointing to slower growth, but that's still better than most parts of the country do not see the growth at all. Texas, with the 2nd largest state economy in the U.S. and the 15th largest economy in the world, will see growth of around 2.2% annually record after the Texas Workforce Commission.

Warm weather, undervalued real estate markets, the lack of state income and good jobs
continue to attract people to the Lone StarState. These new residents all need a place to live, so that the property should be the country continues to be employed, although much less do as the last high-water mark, as in 2006.

Recent national uncertainty about a slump in the housing market and a "credit crunch" has lowered the confidence of consumers and the United States may now be in recession for the first time since 2001. Higher energy costs, especially in the vicinity of $ 100 per barrel oil price, now in the prices of many goods and reflectsServices. The Federal Reserve Board (Fed) cut a key interest rate to increase the federal funds rate twice over a period of two weeks to 125 basis points (1.25%), lending and public consumption. The Federal Reserve Board Open Market Committee, which sets the federal funds rate (the overnight rate that banks each other) fee, again corresponds to the 18th March, MarketWatch.com reports that the Fed might lower rates again, this time by 50 basis points points (5%). Controlling this interestis how the Fed money supply in the U.S. economy is regulated, and this in turn helps in the management of inflation and interest rates. Such actions by the Fed to give the impression that either the economy into a recession is now fast, or from drifting into negative growth.

The Fed reports that banks have raised credit standards at a rate not seen since quarterly surveys of senior bank officers began 17 years ago. Mortgages, consumer loans, commercial real estate loans, commercial loans and see justhigher cost of credit standards, the Fed reports. As most economists know, tighter credit conditions generally slows down economic growth.

To increase growth, Congress has just an economic stimulus package worth about $ 160 billion U.S. dollars, and President Bush is expected to sign it into law, though some economists doubt that it will have no effect.

However, with high population growth and low unemployment, such as a 4.3% unemployment rate in Texas in late December continued to outperform the nationalEconomy. Economists are forecasting to continue this growth in 2008, according to the Real Estate Center at Texas A & M University.