When people talk about economic growth, they often use the term Gross Domestic Product, or GDP, which is simply a measure of the total value of goods and services produced in an area. And when we look at GDP for Gillespie County, it tells an important story about how our local economy evolved from 2019 through 2025.

Before the pandemic, the county’s economy was already healthy and growing. In 2019, the total GDP of Gillespie County was estimated at roughly $1.2 billion. That figure reflects the combined economic activity generated by the county’s agriculture, tourism and hospitality, health care, construction, retail and all other business sectors.

Then came 2020 and the disruption of COVID-19. Like communities across Texas and the nation, businesses in the county faced shutdowns, supply chain challenges, and uncertainty. Tourism — a critical part of our local economy centered around Fredericksburg — slowed temporarily as travel restrictions and public health concerns reshaped visitor behavior.

But what followed surprised many economists.

Rather than stagnating, Gillespie County’s economy rebounded quickly. By 2022, the county’s GDP had climbed to approximately $1.63 billion, representing 38% growth over 2019. Much of that increase occurred between 2020 and 2021, when the local economy expanded by roughly 14% each year. 

Several factors explain this strong performance.

First, the Hill Country experienced a wave of migration during the pandemic. Remote work allowed many professionals to relocate from Austin, San Antonio and beyond to Gillespie County which offers a high quality of life, outdoor amenities, and a strong sense of place. That population shift brought new spending, new businesses, and new investment.

Second, tourism rebounded quickly — and in some cases grew stronger than before. Gillespie County’s wineries, restaurants, lodging properties, and retail shops continued attracting visitors seeking open space and small-town experiences. The County’s hospitality sector alone generated nearly $250 million in accommodation and food service sales in 2022, illustrating the scale of tourism’s economic contribution. 

Third, economic growth has not come from tourism alone. Employment data show that health care, retail trade, and construction are among the county’s largest employment sectors, while professional and technical services are growing as remote work expands in rural communities.

In fact, local job growth has been remarkable over the past decade. Employment in Gillespie County increased significantly from 2013 through 2023, reflecting expansion in construction, manufacturing, and professional services — industries that diversify the local economy beyond tourism alone. 

Today the county’s economic output will likely exceed $1.8 billion, based on recent growth trends. While precise GDP estimates lag by several years, population growth, new construction, and expanding business activity all point to continued economic expansion.

But strong growth also raises important questions for the future.

Infrastructure, housing affordability, workforce availability, and transportation will all shape the next phase of economic development. A growing economy brings opportunity, but it also requires thoughtful planning to maintain the qualities that make Gillespie County attractive to residents and visitors alike.

GDP, in the end, is more than a statistic. It represents the combined effort of thousands of entrepreneurs, workers, farmers, ranchers, hospitality professionals, and business owners who power the Hill Country economy every day.

From wineries, retailers, ag businesses, construction crews and health care providers, those local businesses are the real engine behind Gillespie County’s economic growth — and the reason the county’s economic story from 2019 to 2025 has been one of resilience, adaptation, and opportunity.

Over the next weeks and months, we will dig into stats for 2024 and 2025 to understand the challenges our businesses experienced, and which will require resilience and adaptation once again. This research will help the Fredericksburg Chamber of Commerce focus even more on its mission to champion our business community through collaboration, information and service.