May 2025 Edition

The Greater Houston Partnership is an economic development organization in Houston, Texas. They serve as a a gathering place for community minded business leaders who want to be involved in the positive growth and influence Houston’s economic trajectory. Below are some highlights from the May edition of the Greater Houston Partnership’s Economy at a Glance. Download the full report below.

Download Economy at a Glance Report

GLOBAL HOUSTON

• The global economy is expected to continue growing in ’25. But recent changes to U.S. trade policy are likely to temper that growth, with the International Monetary Fund (IMF) revising its global growth forecast for ’25 down to 2.8 percent in April from 3.3 percent in January. Parts of Houston’s economy may be vulnerable to slowing global growth or increased trade tensions. But its relationships with other countries are deep and multi-faceted:
  • Houston consistently exports more goods and commodities than any other U.S. metro.
  • The Houston/Galveston Customs District routinely handles more foreign tonnage than any other U.S. customs district.
  • Almost 1,000 foreign-owned firms operate over 1,800 offices, factories, warehouses, and service centers in Houston.
  • Almost 150 Houston-based firms operate over 3,200 business establishments across 111 foreign countries.
  • Over 1.8 million Houston residents, nearly one in every four, were born outside the U.S.
  • Eighteen foreign banks, 41 foreign chambers of commerce and trade associations, and 11 trade and commercial offices promote trade and investment in the region.
  • Eighty-six foreign governments have consulates or honorary consuls in Houston.
  • These ties have benefited the region’s economy in years past and will continue to be important to its success in ’25.

HOUSTON METRO EXPORTS

• Houston led the nation in exports in ’24, shipping $180.9 billion in goods and commodities abroad. This is more than the combined value for New York and Los Angeles, the second and third highest exporting metros.
• Houston has ranked as the nation’s top exporting metro in 12 out of the past 13 years.

ENERGY

• • Crude oil and refined petroleum products are the Houston/Galveston district’s top traded commodity, representing 52.1 percent of all trade in ’24. Exports of these products have grown dramatically over the last 15 years, increasing from 13.1 percent of all trade in ’10 to 45.9 percent last year.
  • Despite growing demand, the EIA forecasts a decline in oil prices for ’25. Brent crude, the global oil benchmark, is projected to trade for $67.87 per barrel on average in ’25 after trading for $80.56 in ’24.
  • The energy sector is broadening its focus, exploring additional opportunities for growth and developing alternative energies to meet the rising energy needs while reducing carbon emissions.
  • The Partnership has identified hundreds of companies currently engaged in the energy transition. This includes companies involved in application software, construction and engineering, electric utilities, environmental services, equipment manufacturers, finance and insurance, information services, maritime operations, oil refining, renewables, and specialty chemicals. Business and community leaders recognize Houston’s unique opportunity and responsibility to lead the global transition to an energy-abundant, low-carbon future.

IMMIGRATION

• Approximately one in four Houstonians, over 1.8 million residents, was born outside the United States. Among metro Houston’s foreign-born, 44.1 percent are naturalized (i.e., U.S. citizens). That’s up from 36.4 percent 10 years ago.
  • Immigrants are entrepreneurial. They are twice as likely to start a business as native-born citizens, according to the Small Business Administration (SBA).
  • Immigrants maintain ties to their homeland, facilitating the flow of trade.
  • A large expat and immigrant community is important to foreign corporations seeking to open offices here. They need to know that people from their home country have found success in Houston, and their assigned workers will feel comfortable living here.
  • Growth in an immigrant community tends to be self-reinforcing. Foreign nationals are more likely to relocate to cities with established communities from their home country.

KEY ECONOMIC INDICATORS

• Cost of Living— Houston has the second-lowest living costs among the most populous U.S. metro areas. Houston’s living costs are 5.8 percent below the nationwide average and 30.1 percent below the average of the nation’s most populous metropolitan areas.
• Retail — Houston’s retail market remains a steady performer among the city’s commercial real estate sectors, supported by continued population and job growth.
• Unemployment— Metro Houston’s unemployment rate fell from 4.5 percent in February to 4.2 percent in March, according to the Texas Workforce Commission.

Source: Greater Houston Partnership