Published Jan 02, 2020 by A.J. Mistretta
Houston is one of only a handful of major U.S. cities expected to see economic growth over the next three years, according to a new report from Oxford Economics.
The GDP of both Houston and Dallas are forecasted to grow at an average annual rate of 2.4% between now and 2023, the report finds. That’s second only to San Francisco, where the GDP is expected to increase an average of 2.7% over the next three years.
Researchers at Oxford Economics credit Texas’ reasonable cost of living and minimal government regulation that’s allowing the state’s major metros to absorb businesses from elsewhere around the country. That environment is also encouraging startups.
The Oxford Economics analysis projects that nearly two-thirds of the world’s major cities will experience an economic dip in the next two years; the 10 largest global cities are all forecasted to see a decline in GDP.
The Houston metro GDP increased an average of 1.5% from 2015 to 2019. Oxford Economics forecasts local GDP growth of 1.9% on average over the next two years.
The Partnership forecasts that the Houston region will add 42,300 jobs in the year ahead, led by gains in healthcare, government, food services, and construction. Job losses are anticipated in the energy, retail, and information sectors.