Puerto Rico’s economy grows 3.7%, highest in 23 years
Puerto Rico’s economy experienced growth of 3.7% at the end of fiscal year 2022, a figure not seen since 1999.
“Fiscal year 2022 has been the year with the highest growth we have experienced in the past 23 years,” Planning Board President Julio Lassús-Ruíz announced. “The agency reached this analysis after completing the accounting of the social accounts, which concluded that the economy of Puerto Rico grew by 3.7% that year.”
The findings were reported at a press conference following a meeting between Gov. Pedro Pierluisi and his economic development team.
Lassús-Ruíz also announced the macroeconomic data for the end of fiscal year 2022, along with the revised figures for fiscal years 2020 and 2021. The gross domestic product (GDP) of Puerto Rico, measured at constant prices, reached $5.9 billion in fiscal year 2022, as compared to the previous year.
The analysis found that personal consumption expenditure, a key component of the island’s economic activity, reached $82.4 billion at current prices for fiscal year 2022. When compared to fiscal year 2021 and accounting for changes in prices, such as inflation, this amount represents an increase of 8.5%, pointing to greater consumer confidence and spending power.
In addition, in fiscal year 2022, there was an increase in personal consumption expenditure at constant prices for durable goods (3.9%), nondurable goods (4.3%) and services (15.6%).
Regarding the amount of central and municipal government consumption expenditures in fiscal year 2022, the figure was $7.7 billion at current prices. For that fiscal year, a decrease of 0.2% was estimated at constant prices when compared with the total for fiscal year 2021, marking a slight shift in public spending patterns or efficiency improvements.
Investment growth
Similarly, for fiscal year 2022, total gross domestic investment was estimated at $15.1 billion, an increase of 30.8% at current prices compared to fiscal year 2021. This item grew by 35.5% at constant prices compared to the amount from the previous fiscal year.
Within the total for fiscal year 2022, the investment in construction reached $4.8 billion at current prices, an increase of 7.5% compared to fiscal year 2021, suggesting a positive investment climate that should also stimulate job creation. At constant prices, this represented a 1.5% increase compared to the previous fiscal year.
With regard to global transactions, Lassús-Ruiz noted that increases were estimated both in sales of goods and services abroad and in purchases from abroad. In fiscal year 2022, total exports amounted to $72.1 billion, an increase of 2.9% at current prices compared to the previous fiscal year, while total imports reached $99.5 billion, an increase of 12% at current prices compared to fiscal year 2021.
Net income reached $60.5 billion, representing a 6.7% increase at current prices during fiscal year 2022, while personal disposable income stood at $81.8 billion. The latter figure represents the amount available to individuals after tax payments, reflecting a 4.1% growth at current prices for fiscal year 2022 compared to the estimates from the previous fiscal year.
“These data confirm that Puerto Rico’s economy remains in positive territory and is reflected in the impact it had on gross product,” Lassús-Ruiz added.
