Despite an increasingly global economy, the economic contribution of international business to the Washington region has not grown over the past five years, according to a study being released today by the Greater Washington Initiative.
The study, which compared the Washington area with 11 other major cities around the world, found that international commerce counted for about $41 billion of the regional economy, or 13 percent — roughly the same as in 2000.
A shaky post-Sept. 11 economy, the dot-com bust, and a downturn in the telecom sector that resulted in several large international companies leaving town are to blame, said Tim Priest, executive director of the Greater Washington Initiative.
“Considering everything that’s happened in this region in the last five years, the fact that it remained flat is positive news,” Priest said.
The region has also lost about 26,000 international jobs since 2000. But the number of internationally owned companies with Washington area offices grew by 9 percent to 700.
The Greater Washington Initiative faces a tough road as it tries to market the region to international investors. The recent breakdown of the Dubai Ports deal and an intense debate over immigration have put the Washington business community in the international spotlight.
The biggest obstacle will be “combating the perception that we’re a hostile environment for business,” Priest said. “We need to present a welcoming image for immigrants.”
The United Kingdom remains the top international employer in the region, with more than 9,000 jobs created by British companies.
The Greater Washington Initiative has a marketing office in London and is looking into opening a second overseas office to further promote the region.
“Thirteen percent of the economy is nothing to sneeze at. It’s the same size as the technology sector,” Priest said. But “if we were flat even five years from now, we would think something was wrong.”
