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

Houston Emerging as a Premier International Sports Destination

7/10/23
Houston, also known as the Bayou City, Space City and the Energy Capital of the World, might be adding another title as it is rapidly gaining recognition as an international sports city. After years of bidding for and hosting small-scale events, the Houston region has successfully secured and will host a series of major sporting events in the upcoming years, including the 2024 College Football Playoff National Championship, 2026 FIFA World Cup, and the 2025, 2027 and 2031 AAU Junior Olympic Games. Houston also recently hosted the NCAA Final Four, LPGA Chevron Championship in The Woodlands, and has been announced as a host city for several 2023 CONCACAF Gold Cup matches.  According to a recent report from OLBG, Houston is the sixth most valuable sports city in the U.S. in terms of revenue generated from NFL, NBA, MLB, NHL, and MLS teams and predicted revenue growth, but it is projected to move into the top five by 2030. Speculations abound that Houston may soon welcome an NHL team, as reported by the Houston Chronicle, which could further bolster its rankings.  Despite Houston's wins, the city was ranked No. 29 in a recent evaluation of the 50 best cities for sports business by the Sports Business Journal, behind Dallas, Austin, and San Antonio. Criticisms revolved around Houston's sprawling nature and lack of walkability. Another concern raised was the relative freshness of its venues, with three of its major stadiums—NRG Stadium, Minute Maid Park, and Toyota Center— having been constructed in the early 2000s. Shell Energy Stadium is the newest major stadium, opened in 2012.   Beyond the 350-acre complex housing NRG Center, NRG Arena and the Astrodome, the absence of appealing establishments such as restaurants, bars, and hotels for visitors detracts from Houston's identity as a sports city, according to Houston First CEO Michael Heckman.   To address this, Houston First and organizations like the South Main Alliance's Main Street Coalition are actively exploring comprehensive plans to develop the area and attract commercial developers to this currently underdeveloped region.   Currently, NRG Park has plans to revamp its complex over a period of several years while Minute Maid Park has recently completed upgrades to its video display technology as part of a new partnership with Samsung, in addition to its 8,500-square-foot team store constructed at center field and new food options.  The Houston Astros are also set to embark on a mixed-use development adjacent to Minute Maid Park, encompassing a hotel, an entertainment center, restaurants, an indoor tailgating area, and a walkway connecting the development to the ballpark's club level.  In an interview with the Houston Business Journal, Heckman stated that “the trend [for cities] is to create these entertainment districts around the sports and entertainment complexes. For us, I think it's a phenomenal opportunity to learn lessons from the others that have done this around the country, but also to make it uniquely Houston.”  While there are currently no definite plans, NRG Park CEO and Executive Director Ryan Walsh believes that the area around the complex is “really ripe for development. Give it five years... I think you're gonna see a lot of change in this area.”  Learn more about living in Houston.
Read More
Economy

Report: Houston's Strong International Ties Better Position Regional Economy for Global Economic Headwinds

5/12/23
HOUSTON — Houston’s trade ties with its global partners have largely recovered from the impacts of the pandemic, according to the Greater Houston Partnership’s latest Global Houston report.  The analysis documents how Houston’s international activity in 2022 continued to set records: The Houston-Galveston Customs District continues to rank first in the country in tonnage handled (exports and imports) with over 382.8 million metric tons. For the first time in history, the Houston-Galveston Customs District ranked first in total value with $372.6 billion, which typically ranks second behind Los Angeles/Long Beach. Exports topped $191.8 billion, well above the previous record of $140.8 billion set in 2021. Foreign direct investment (FDI) is back at pre-pandemic levels and continues accelerating. The Partnership documented 44 business expansions from companies headquartered overseas in 2022, up from 33 in 2021. In 2020, only 13 non-U.S. firms announced plans to expand or relocate operations in the region. International migration surged to 47,400, accounting for the largest share (38%) of the region’s population growth in 2022. International air traffic continues to edge closer to pre-pandemic levels. The Houston Airport System handled 10.4 million international passengers in 2022, up from 7.3 million in 2021 but still below the pre-COVID peak of 12.0 million in 2020.  The Port of Houston set a record for container traffic, handing nearly 3.2 million loaded TEUs (twenty-foot-equivalent units), a 17.9% increase over 2021. “The international metrics demonstrate Houston’s ties global economy continues to strengthen, positioning the region for continued growth despite global economic headwinds,” Partnership Chief Economist and Senior Vice President of Research Patrick Jankowski said. According to the report, the ongoing war in Ukraine, persistent inflation, and rising interest rates are key factors that continue to be speedbumps to growth but are not considered outright obstacles. “Any slowdown caused by macro forces will likely impact Houston only marginally,” Jankowski said. “Houston’s economy will continue to expand, create jobs, and attract new residents to the region.”   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 value of exports via the district has exceeded imports every year since 2013. Over 1,700 foreign-owned firms have an office, factory, distribution, or service center in Houston.  Nearly 150 Houston-headquartered companies operated subsidiaries outside the U.S.  Another section of the Global Houston report 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 increased among all leading partners in 2022, continuing the trend of growth. Top 10 Houston trade partners and the value of trade in 2022:  Mexico -- $32.1 billion, up from $21.6 billion in 2021. China -- $31.9 billion, up from $24.8 billion in 2021.  South Korea -- $24.6 billion, up from $16.2 billion in 2021.  Brazil -- $20.1 billion, up from $16.8 billion in 2021.  Netherlands -- $19.1 billion, up from $13.4 billion in 2021.  United Kingdom -- $16.4 billion, up from $9.9 billion in 2021. India -- $15.7 billion, up from $13.9 billion in 2021. Germany -- $15.0 billion, up from $12.0 billion in 2021. Japan -- $14.4 billion, up from $11.5 billion in 2021. Singapore -- $13.6 billion, up from $5.9 billion in 2021. View the trade profiles report 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 region, the Partnership champions growth across 12 counties by bringing together business and civic-minded leaders who are dedicated to the area’s long-term success. Representing more than 950 member organizations and approximately one-fifth of the region’s workforce, the Partnership is the place companies come together to make an impact. Learn more at Houston.org.   CONTACT:           Brina Morales                                                 Director, Communications      bmorales@houston.org       (c) 832-287-5089             
Read More

Related Events

Executive Partners