February 25, 2022

Fiscal Notes: How to Measure the Economy

(AUSTIN) — There is a flurry of data that can tell us about the state of the U.S. economy, with gross domestic product (GDP) being one of the most frequently cited statistics. In the recently released February issue of Fiscal Notes, the Comptroller's office takes you back to Economics 101 with an overview of GDP — the thermometer that gauges the ups and downs of our economy. 

GDP represents the monetary value of all final goods and services produced within a country over a specific period. GDP is a popular tool for good reasons: The data are readily available, are easily understood and can be compared from one year or quarter to the next. 

“It's hard to overstate the value of data to inform policymakers and taxpayers of the complex economic forces at play in Texas,” Texas Comptroller Glenn Hegar said. “From the standpoint of our agency, regularly crunching and publishing data help the public better understand the economic nuances that can affect their pocketbooks. At the same time, these data can help lawmakers make informed decisions about how best to improve the lives of Texas taxpayers.

“It’s also important to recognize that GDP alone may not paint the clearest picture of the economy,” Hegar said. “That’s why GDP is best used alongside other statistics such as job counts to give us a more accurate and well-rounded economic summary.”

This issue of Fiscal Notes also examines economic data that are updated more often than traditional economic measures like GDP. These high-frequency data have proven especially useful following the first wave of the COVID-19 pandemic, which caused a recession, and in turn, a high demand for real-time analyses of public health and the economy.

Fiscal Notes furthers the Comptroller’s constitutional responsibility to monitor the state’s economy and estimate state government revenues. It has been published since 1975, featuring in-depth analyses concerning state finances and original research by subject matter experts in the Comptroller’s office.

For questions about how our agency functions are continuing during the outbreak, visit our COVID-19 News page or our Virtual Field Office. Fiscal Notes is available online and can be received by subscribing via the Comptroller's website.