Puerto Rico’s GDP grows 3% in 2023 after decline
Puerto Rico’s real gross domestic product grew 3% in 2023 after falling 2.1% in 2022, according to the U.S. Bureau of Economic Analysis.
The growth was driven largely by a 6.4% increase in exports. Goods exports rose 6.6%, led by pharmaceuticals and organic chemicals, which increased 5.9%, and medical and scientific equipment, which climbed 8%. Service exports rose 5.6%, with travel services surging 15.1% on higher visitor spending.
The Puerto Rico Economic Development Bank reported an 18.7% increase in inbound air passengers in 2023.
Personal consumption expenditures rose 1.2%, fueled by a 4% increase in services such as health care and recreation. Spending on goods fell 0.8%, led by a 6.2% drop in food and beverage purchases as rising prices outpaced demand.
Government spending increased 4.8% because of federal, central and municipal investment in recovery and infrastructure, including rebuilding the power grid, upgrading the aqueduct system, repairing roads and bridges and improving Camp Santiago, a Puerto Rico National Guard facility.
Private fixed investment rose 3.8%, led by purchases of industrial equipment, while private inventory investment declined, especially in manufacturing. Imports increased 4.4%, driven mainly by pharmaceuticals and organic chemicals, which were up 6%.
“During 2023, widespread growth across exports, consumption, government and investment supported Puerto Rico’s economic recovery,” the BEA said in its release.
