Houston
Economy

Houston is recognized worldwide for its energy industry—particularly for oil and natural gas—as well as for biomedical research and aeronautics. Renewable energy sources—wind and solar—are also growing economic bases in the city, and the City Government purchases 90% of its annual 1 TWh power mostly from wind, and some from solar. Since the 2020s Houston has become a growing hub for technology startup firms and is the fastest growing sector of the city's economy. Major technology and software companies within Greater Houston include Crown Castle, KBR, FlightAware, Cybersoft, Houston Wire & Cable, and HostGator. Aylo, Go Daddy, and ByteDance have offices in the Houston area. On April 4, 2022, Hewlett Packard Enterprise relocated its global headquarters from California to the Greater Houston area. The Houston Ship Channel is also a large part of Houston's economic base.

Because of these strengths, Houston is designated as a global city by the Globalization and World Cities Study Group and Network and global management consulting firm A.T. Kearney. The Houston area is the top U.S. market for exports, surpassing New York City in 2013, according to data released by the U.S. Department of Commerce's International Trade Administration. In 2012, the Houston–The Woodlands–Sugar Land area recorded $110.3 billion in merchandise exports. Petroleum products, chemicals, and oil and gas extraction equipment accounted for roughly two-thirds of the metropolitan area's exports last year. The top three destinations for exports were Mexico, Canada, and Brazil.

The Houston area is a leading center for building oilfield equipment. Much of its success as a petrochemical complex is due to its busy ship channel, the Port of Houston. In the United States, the port ranks first in international commerce and 16th among the largest ports in the world. Unlike most places, high oil and gasoline prices are beneficial for Houston's economy, as many of its residents are employed in the energy industry. Houston is the beginning or end point of numerous oil, gas, and products pipelines.

The Houston–The Woodlands–Sugar Land metro area's gross domestic product (GDP) in 2022 was $633 billion, making it the seventh-largest of any metropolitan area in the United States and larger than Iran 's, Colombia 's, or the United Arab Emirates ' GDP. Only 27 countries other than the United States have a gross domestic product exceeding Houston's regional gross area product (GAP). In 2010, mining (which consists almost entirely of exploration and production of oil and gas in Houston) accounted for 26.3% of Houston's GAP up sharply in response to high energy prices and a decreased worldwide surplus of oil production capacity, followed by engineering services, health services, and manufacturing.

The University of Houston System 's annual impact on the Houston area's economy equates to that of a major corporation: $1.1 billion in new funds attracted annually to the Houston area, $3.13 billion in total economic benefit, and 24,000 local jobs generated. This is in addition to the 12,500 new graduates the U.H. System produces every year who enter the workforce in Houston and throughout Texas. These degree-holders tend to stay in Houston. After five years, 80.5% of graduates are still living and working in the region.

Ninety-one foreign governments have established consular offices in Houston's metropolitan area, the third-highest in the nation. Forty foreign governments maintain trade and commercial offices here with 23 active foreign chambers of commerce and trade associations. Twenty-five foreign banks representing 13 nations operate in Houston, providing financial assistance to the international community.

In 2013, Houston was identified as the number one U.S. city for job creation by the U.S. Bureau of Statistics after it was not only the first major city to regain all the jobs lost in the preceding economic downturn, but also after the crash, more than two jobs were added for every one lost. Economist and vice president of research at the Greater Houston Partnership Patrick Jankowski attributed Houston's success to the ability of the region's real estate and energy industries to learn from historical mistakes. Furthermore, Jankowski stated that "more than 100 foreign-owned companies relocated, expanded or started new businesses in Houston" between 2008 and 2010, and this openness to external business boosted job creation during a period when domestic demand was problematically low.
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