Skip to main content

Report: Global Economic Recovery Will Help Lift Houston

Published May 26, 2021 by A.J. Mistretta

KEI Meta - Foreign Trade

HOUSTON (May 26, 2021)— Following a year marred by the pandemic and a global recession, Houston’s role as a center for foreign trade and international business is likely to support the region’s economic recovery in the months and years ahead. That’s according to a new analysis released by the Greater Houston Partnership in conjunction with its Global Houston report

The analysis documents a rapid and dramatic shift as COVID-19 took hold here beginning in March 2020:

  • Port of Houston tonnage fell 2.3 million metric tons (6.7 percent) during the pandemic, nearly all the decline occurring in shipments of crude and refined products. 
  • The Houston Airport System handled 3.9 million international passengers in 2020, down from 12 million the prior year. Over sixty percent of those passengers traveled in Q1 2020, before countries imposed restrictions on international travel.
  • The poor job market, international travel restrictions, and anti-immigrant rhetoric slowed the flow of newcomers from aboard. International migration fell to 24,587 residents, the lowest level in over 20 years. 
  • Foreign direct investment (FDI) declined as well. The Partnership documented just 11 business relocations and expansions from companies headquartered overseas in 2020, down from a typical annual average of 30 to 40 such announcements. 

The deployment of vaccines in the U.S. and other industrialized nations has significantly diminished the number of new COVID-19 infections and severe illness in those countries. Around 1.6 billion vaccine does have been delivered worldwide as of mid-May. Nevertheless, many poorer nations without the necessary resources are lagging in vaccinations and some have yet to administer one dose. 

Despite the headwinds, the arrival of vaccines has launched a global economic recovery, which bodes well for Houston, according to the report. At last estimate, the Brookings Institution in 2017 found that exports alone support 17.3% of Houston’s GDP. Partnership research estimates direct and indirect employment in the region tied to exports is about 470,000 jobs. Today, Houston’s fortunes are tied as much to the global economy as they are to the U.S. economy and energy. 

“The U.S. and China are leading the global recovery,” said Partnership Senior Vice President of Research Patrick Jankowski. “The IMF expects Brazil, France, India, Indonesia, Germany, Japan, Mexico, Russia, Turkey and the U.K. to make solid contributions as well. The good news for Houston is that all of the region’s major export markets are expected to have solid growth this year and next.” 

Other data included in the report reflects Houston’s influence as a global business hub: 

  • Houston has trading relationships with more than 200 countries.
  • The Houston-Galveston Customs District ranked first in tonnage handled (exports and imports) in 2020, a position it’s held 11 of the last 15 years. The district ranked sixth in value of shipments (exports and imports) last year.
  • The value of exports via the district have exceeded imports since 2013.
  • Since 2009, foreign-owned firms have announced nearly 700 plant, warehouse or office expansions, start-ups or relocations in Houston.
  • Nearly 150 Houston-headquartered companies operate nearly 3,000 offices, plants, or distribution centers in over 100 countries.

“We talk often of Houston as a great global city—one that competes with the likes of London, Tokyo, Sao Paulo and Beijing. But that’s only possible because of our infrastructure—namely our port—and our connections around the world,” said Partnership President and CEO Bob Harvey. “Houston’s ties abroad remain strong. We have long been a major international gateway and today we can tout 41 Fortune Global 1000 firms, over 1,700 foreign-owned firms operating in our region and, of course, the top U.S. port.” 
A complementary report, Global Houston: Insights into the Region’s Top 20 Trading Partners, provides additional statistics and information about Houston’s international business ties and ranks the region’s top 20 trade partners. The value of goods and services traded declined among many leading partners in 2020 due in large part to the pandemic. 
Top 5 Houston trade partners and the value of trade in 2020: 

  1. China — $19.3 billion, up from $14.7 billion in 2019. 
  2. Mexico — $14.5 billion, down from $21.7 billion in 2019. 
  3. Brazil — $12.0 billion, down from $15.1 billion in 2019. 
  4. Korea — $9.5 billion, down from $13.2 billion in 2019. 
  5. Germany— $9.5 billion, down from $10.0 billion in 2019. 

View the Global Houston: Insights Into the Region’s Top 20 Trading Partners here and the Analysis of International Trade and its Impact on Houston’s Economy here
 

###

Greater Houston Partnership
The Greater Houston Partnership works to make Houston one of the best places to live, work and build a business. As the economic development organization for the Houston region, the Partnership champions growth across 11 counties by bringing together business and civic-minded leaders who are dedicated to the area’s long-term success. Representing 1,000 member organizations and approximately one-fifth of the region’s workforce, the Partnership is the place business leaders come together to make an impact. Learn more at Houston.org.

CONTACT:    
A.J. Mistretta 
Vice President, Communications         
(c) 504-450-3516 | amistretta@houston.org

Maggie Martin 
Senior Manager, Communications 
mmartin@houston.org

Related News

Economic Development

Report: Houston's Global Strengths Position Region to Navigate Trade Uncertainty

5/1/25
HOUSTON (May 1, 2025)—As evolving trade policies and geopolitical tensions create economic uncertainty in 2025, Houston enters the year with a strong foundation. According to the Greater Houston Partnership’s newly released 2025 Global Houston report, the region led the U.S. in exports last year – shipping $180.9 billion in goods, more than any other metro area. Click to expand   The report, based on 2024 data compiled prior to this year’s policy changes, highlights how Houston’s infrastructure, industrial base and deep global relationships position the region to better navigate trade disruptions.  “As the U.S. seeks fairer trade arrangements, the uncertainty is impacting some long-term investment decisions,” Partnership President and CEO Steve Kean said. “At the same time, we’re seeing increased interest in the Houston metro as a destination for onshoring. Our region enters this period from a position of strength – we’re not only the nation’s top exporting metro, but also a leader in population and GDP growth. Houston is well-positioned to adapt, respond and benefit from global economic shifts.” Notably, the Houston/Galveston Customs District is one of only 10 in the U.S. where exports exceed imports – a reflection of the region’s strong global demand and production capacity. Key Metrics from the Global Houston Report: #1 U.S. Exporting Metro: $180.9B in goods exported in 2024 (3.1% increase from 2023) Record Customs District Tonnage: 432.6M metric tons handled, ranking No. 1 nationally Total Trade Value: $376.3B through Houston/Galveston, ranking No. 4 among U.S. districts Foreign Direct Investment: 81 foreign-owned companies announced plans to relocate, expand or start operations; a 56% increase from 2023 when 52 international projects were announced. (increase is partially due to improved data sourcing) Global Connectivity: 3.1M international passengers traveled through Houston airports (record; a 4.2% increase over the 12.6 million passengers in ’23) 3.4M container units processed at Port Houston (record) Migration-Driven Workforce Growth: Nearly 65% of the region’s 2024 population growth came from international migration Energy Leads in Exports Energy continues to play an outsized role in Houston’s international economy. Oil and refined petroleum products accounted for more than half (52.1%) of all trade value flowing through the Houston/Galveston Customs District in 2024 – totaling $196.1B, with 88% of that volume heading overseas.  According to the U.S. Energy Information Administration (EIA), global oil demand is expected to reach 103.6 million barrels per day in 2025 – a new record, though below earlier projections. At the same time, lower forecasted oil prices and emerging trade barriers could prompt Texas producers to scale back new drilling, potentially reducing export volumes through the Houston/Galveston District. Top 10 Houston Trading Partners in 2024: Netherlands – $31.9B (↑ 23%) | Driven by oil exports amid EU energy diversification China – $30.1B (↓ 7%) | Key supplier of industrial equipment and electronics Mexico – $24.9B (↓ 13%) | Most integrated supply chain partner South Korea – $23.8B (↑ 4%) Germany – $16.9B (↑ 10%) Brazil – $16.8B (↑ 6%) United Kingdom – $15.0B (↑ 6%) Japan – $13.5B (↑ 3%) India – $13.2B (↓ 0.8%) Canada – $11.5B (↑ 22%) About the Report Produced annually by the Greater Houston Partnership’s Research team, the Global Houston Report analyzes the region’s international trade, foreign investment, migration trends and sector strengths. It serves as a key resource for companies navigating an increasingly complex global business landscape. Access the full report, here. CONTACT:           Brina Morales                                                 Sr. Director, Communications     bmorales@houston.org  
Read More
Economic Development

Trade Trends with Netherlands, China and Mexico Reinforce Houston's Global Reach

4/30/25
As the global economy adapts to evolving trade policies and geopolitical tensions, Houston’s international trade performance offers insight into the strength and adaptability of the region’s economy. The Greater Houston Partnership’s 2025 Global Houston report reveals how deep global relationships and sector strengths position the region to weather potential disruptions better than most.  “As the U.S. seeks fairer trade arrangements, the uncertainty is impacting some long-term investment decisions,” Partnership President and CEO Steve Kean said. “At the same time, we’re seeing increased interest in the Houston metro as a destination for onshoring. Our region enters this period from a position of strength – we’re not only the nation’s top exporting metro, but also a leader in population and GDP growth. Houston is well-positioned to adapt, respond and benefit from global economic shifts.” Here’s what Houston’s top three global trading partners reflects about the region's international ties: 1. The Netherlands moves to the top spot for the first time due to energy exports Trade Value (2024): $31.9B | ↑ 23% YoY With the Port of Rotterdam central to European fuel imports, Houston’s energy exports – particularly crude and refined petroleum – accounted for over 80% of Houston’s trade with the Netherlands last year. Europe's shift away from Russian energy further solidified Houston's role in Europe’s energy security strategy. 2. China slips to second, but remains a critical player Trade Value (2024): $30.1B | ↓ 7% YoY Exports to China dropped by a 14.5 percent, particularly in mineral fuels, plastics and organic chemicals. Rising tariffs have introduced uncertainty, but the scale of Houston-China trade reflects deep supply chain integration. China remains vital to Houston’s economy as a top source of industrial equipment, electronics and raw materials for regional manufacturers. Policy shifts could significantly impact local businesses. 3. Mexico holds steady as a regional anchor Trade Value (2024): $24.9B | ↓ 13% YoY Mexico is Houston’s most integrated trade partner, supplying inputs like auto parts, crude oil and industrial materials, while Houston exports fuels, chemicals and steel products. Cross-border trade is a cornerstone of Houston’s industrial competitiveness. Continued collaboration with Mexico will be key to maintaining supply chain efficiency. Key Metrics from the Global Houston Report: #1 U.S. Exporting Metro: $180.9B in goods exported in 2024 (3.1% increase from 2023) Record Customs District Tonnage: 432.6M metric tons handled, ranking No. 1 nationally Total Trade Value: $376.3B through Houston/Galveston, ranking No. 4 among U.S. districts Foreign Direct Investment: 81 foreign-owned companies announced plans to relocate, expand or start operations; a 56% increase from 2023 when 52 international projects were announced. (increase is partially due to improved data sourcing) Global Connectivity: 13.1M international passengers traveled through Houston airports (record; a 4.2% increase over the 12.6 million passengers in ’23) 3.4M container units processed at Port Houston (record) While the Netherlands, China and Mexico are the region’s top three trading partners, they account for only one-fourth of the region’s exports. The balance goes to 220 other countries.  
Read More

Related Events

Aerospace & Aviation

Aviation/Aerospace Forum

Houston is a city that takes humankind’s boldest challenges head-on — both here on earth and far beyond. With over 500 space, aviation and aerospace-related firms and institutions,…

Learn More
Learn More
Executive Partners