Puerto Rico posts economic growth, revised index shows stronger 2024
Puerto Rico’s economy maintained a steady pace of growth in 2024, according to the latest Economic Activity Index (IAE-BDE, in Spanish) published by the Puerto Rico Economic Development Bank.
The average IAE-BDE for calendar year 2024 reached 128.1, a 0.6% increase over 2023. Fiscal year 2024 closed even higher at 128.5, marking a 2.9% year-over-year gain.
These figures “reflect fiscal discipline, continued investment and dynamism in key sectors,” said bank President Carmen Vega, who called the index a “reliable and strategic tool” for tracking the island’s economic health.
Revisions to the index, based on updated wage employment and gasoline consumption data, led to a more positive assessment of the economy. What was initially reported as a -0.6% contraction for calendar year 2024 has been revised to a 0.8% increase. For the first five months of fiscal 2025, the initial estimate of a -1% drop was corrected to -0.4%.
“Thanks to these revisions, the index’s accuracy aligns more closely with U.S. Bureau of Labor Statistics standards and Puerto Rico Treasury Department data,” said bank economist Gladys Medina.
In March 2025, the index rose slightly to 127.6, supported by a 5% monthly increase in cement sales and a 0.1% rise in electricity generation. Nonfarm payroll employment grew 0.5% year-over-year, while cement sales jumped 11.8%.
Vega attributed the performance to “ongoing public and private investment, business confidence and operational continuity in key development areas.”
The bank also highlighted improvements in data transparency. Gasoline consumption, for example, was revised to reflect an 8.5% increase in 2023, compared to the earlier estimate of 6.9%. The 2024 decline was also found to be less severe than initially reported.
Vega said the index remains a strong proxy for Puerto Rico’s gross domestic product, adding, “These results confirm that Puerto Rico continues to advance with fiscal responsibility, improved measurement capabilities and reliable tools to design the future.”
