Houston’s strong international ties better position the regional economy for global economic headwinds

HOUSTON — Houston’s trading relationships with its global partners have largely recovered from the impact of the pandemic, according to the Greater Houston Partnership’s latest Global Houston report.

The analysis documents how Houston’s international operations continued to set records in 2022:

• The Houston-Galveston Customs District continues to lead the country in terms of tonnage handled (exports and imports) with over 382.8 million tonnes.
• For the first time in history, the Houston-Galveston Customs District took first place with a combined value of $372.6 billion, usually second only to Los Angeles/Long Beach.
• Exports totaled over US$191.8 billion, well above the previous record of US$140.8 billion set in 2021.
• Foreign direct investment (FDI) is back to pre-pandemic levels and continues to grow. The partnership documented 44 foreign-headquartered company expansions in 2022, up from 33 in 2021. In 2020, only 13 non-US companies announced plans to expand or relocate operations in the region.
• International migration rose to 47,400, accounting for the largest share (38%) of the region’s population growth in 2022.
• International air travel continues to approach 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 in container traffic, handling nearly 3.2 million loaded TEUs (twenty-foot equivalent units), a 17.9% increase from 2021.

“International metrics show Houston’s ties to the global economy continue to strengthen and the region is positioned for continued growth despite global economic headwinds,” said Patrick Jankowski, the partnership’s chief economist and senior vice president of research.

According to the report, the ongoing war in Ukraine, persistent inflation and rising interest rates are key factors that continue to slow growth, but are not considered real obstacles.

“A slowdown caused by macroeconomic forces is likely to have only a minor impact on Houston,” Jankowski said. “Houston’s economy will continue to grow, creating jobs and attracting new residents to the region.”

Additional data included in the report reflects Houston’s impact as a global economic hub:

• Houston maintains trade relations with more than 200 countries.
• The value of exports through the district has exceeded imports every year since 2013.
• Over 1,700 foreign companies have an office, factory, sales or service center in Houston.
• Nearly 150 companies headquartered in Houston had subsidiaries outside the United States

Another section of the Global Houston report provides additional statistics and information on Houston’s international business relationships, listing the region’s top 20 trading partners. The value of traded goods and services increased for all leading partners in 2022, thus continuing the growth trend.

Houston’s Top 10 Trading Partners and the Value of Trade in 2022:

1. Mexico – $32.1 billion, up from $21.6 billion in 2021.
2. China – $31.9 billion, up from $24.8 billion in 2021.
3. South Korea – $24.6 billion, up from $16.2 billion in 2021.
4. Brazil – $20.1 billion, up from $16.8 billion in 2021.
5. Netherlands – $19.1 billion, up from $13.4 billion in 2021.
6. United Kingdom – $16.4 billion, up from $9.9 billion in 2021.
7. India – $15.7 billion, up from $13.9 billion in 2021.
8. Germany – $15.0 billion, up from $12.0 billion in 2021.
9. Japan – $14.4 billion, up from $11.5 billion in 2021.
10. 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 grow a business. As the region’s economic development organization, the partnership fosters growth across 12 counties by bringing together business and civil society leaders committed to the region’s long-term success. Representing more than 950 member organizations and around a fifth of the region’s workforce, the partnership is where businesses come together to make a difference. Learn more at Houston.org.

CONTACT:

Brina Morales
Director, Communications
[email protected]
(c) 832-287-5089