Much like the Formula 1 cars that sped into town last November, Austin’s economy is racing ahead of the recession. In 2010, it pulled ahead of the pack with the second-largest gross domestic product growth among the nation’s 50 biggest metropolitan areas. In 2011, it jostled with New Orleans for the fastest-growing population among major U.S. cities. And last year, Austin slid into first place in Forbes’ annual survey of the best big cities for jobs.

According to Tavo Hellmund, managing partner of Full Throttle Productions, LP, promoter of the Formula 1 United States Grand Prix, “Few cities — if any — in America could rival the connectivity of all the key elements needed for hosting a Formula 1 event as well as Austin.”

In other words, it was the natural choice as host for the U.S. Grand Prix — which in turn will further fuel the city’s phenomenal growth. More than 300,000 visitors descended on Austin in November for the inaugural Grand Prix event, held at Circuit of the Americas, the new Formula 1 racetrack just east of Austin Bergstrom International Airport.

As the first U.S. facility constructed from the ground up for Formula 1 racing, Austin’s track will host the U.S. Grand Prix from 2012 through 2021, as well as dozens of other motor sports, entertainment and business events each year. Austin’s Chamber of Commerce estimates the annual economic impact of Grand Prix events at $400–500 million, more than double that of the South by Southwest film and music festival.

Keeping pace with the influx of out-of-state visitors, development in Austin’s downtown area is exploding, with numerous hotels, condominiums, office buildings and entertainment complexes in the works.

Last summer, JW Marriott broke ground on a new 1,000-room hotel just two blocks from the Austin Convention Center. When it’s completed in 2015, the hotel will feature 110,000 square feet of meeting space — and compete heavily for convention business with the Hilton Austin. A few blocks away, a 50-story, 1,000-room Fairmont Austin is slated to open in the same year.

In addition, the city provided incentives for building condos in the Central Business District, part of former Mayor Will Wynn’s plan for 25,000 people to be living in the downtown area by 2015. Among the recently completed residential skyscrapers are Austin’s two tallest buildings — The Austonian and 360 Condominiums — plus the Four Seasons Residences and The Residences at W Austin.

Austin’s commercial real estate market is also booming, with office occupancy rates downtown soaring to 86 percent. While the city’s technology industry has traditionally been based in North Austin and Round Rock (home to one of the metro area’s largest employers, Dell), a number of high-tech companies recently moved into high-profile offices in the downtown area. Among them is Facebook, which opened its first office outside California on happening Sixth Street.

Austin’s fast-paced economy comes as no surprise to the innovative team of Austinites steering their city to success. Boasting a diverse population of businesspeople, musicians, high-tech employees, government workers and college students, the 800,000-person metropolis possesses an independent spirit that’s encapsulated in its unofficial slogan, “Keep Austin Weird.”

“Austin is a world-renowned technology hub developed from an entrepreneurial culture, outstanding university-based research, a great mix of venture funding and a rich pool of intellectual talent and leadership,” says Dave Porter, senior vice president of economic development at the Greater Austin Chamber of Commerce. In short, it’s “the youngest, smartest, safest, fastest-growing city in the country.”

Pop into any of South Congress Avenue’s sushi bars, curio shops or costume stores and it’s immediately apparent Austin’s residents value their locally owned, independent businesses and organizations. Wander the trails of the Barton Creek Greenbelt or witness a million Mexican free-tail bats emerge from beneath the Congress Avenue Bridge and it’s easy to see why Austin frequently ranks among America’s greenest cities.

Austinites enjoy both reveling in witty wordplay (during the O. Henry Pun-Off, held each May at the O. Henry Museum) and celebrating the birth of a down-in-the-dumps donkey (at Eeyore’s Birthday Party, staged every April in Pease Park). And the city’s vibrant music scene spawned such artists as Willie Nelson and Stevie Ray Vaughan — as well as earned it the moniker “Live Music Capital of the World.”

So what if it only ranked No. 8 on Bloomberg Businessweek’s 2012 list of America’s 50 Best Cities? With its unique character and entrepreneurship, Austin will be speeding to the top in no time flat.