DALLAS — According to a new report from Fit Small Business, Texas ranks as the best state to weather a recession in 2020.
With reemerging concerns of a possible downturn, Fit Small Business once again conducted its state recession survivability report to see how the rankings have changed.
In the 2017 report, Texas ranked at No. 15.
For a look at the top 25 states, click here.
The evaluation worked to determine which states would be able to make it through a recession with the least amount of economic and financial damage.
In general, most of the state’s best equipped to survive in 2020 were quite different than those in the 2017 report.
The reason for such drastic shifts in the ranking is reflective of states both becoming better equipped for market change, in addition to adjustments in the metrics used by Fit Small Business.
In the 2019 study, Fit Small Business included new sets of data and shifted the weights of certain metrics. These changes were put in place to better reflect what Fit Small Business saw at recession survivability.
Fit Small Business sourced data from the Bureau of Economic Analysis, Federal Reserve, Bureau of Labor, Zillow, International Trade Administration, iBanknet and Tax Foundations for its report.
To see where other states fall within Fit Small Business' survivability ranking, see the gallery at the top of this story.
States with a wide variety of businesses, diverse global trade partners and a robust debt-to-income ratio were in the best position to withstand a recession.
Jeff Steen, special projects editor at Fit Small Business, said that earlier Fit Small Business reports have shown Texas as an opportunity-rich and financially stable state.
“A lot of states can spend a little bit more effort preparing for that 'rainy day' by increasing the percentage of the total budget allocated for stabilization,” said Steen.