Real gross domestic product (GDP) in Puerto Rico grew by 3.0 percent in 2023, following a decline of 2.1 percent in 2022, according to new statistics from the U.S. Bureau of Economic Analysis.
The main driver of GDP growth was an increase in exports. Personal consumption expenditures, government spending, and private fixed investment also contributed to the rise, though these gains were partly offset by a decrease in private inventory investment. Imports increased as well.
Exports rose by 6.4 percent overall, with goods exports up by 6.6 percent and services exports rising by 5.6 percent. Pharmaceuticals and organic chemicals led the growth in goods exports with a 5.9 percent increase, while medical and scientific equipment and appliances grew by 8.0 percent.
Travel services accounted for most of the increase in services exports, growing by 15.1 percent due to higher spending from air visitors to Puerto Rico. The Economic Development Bank for Puerto Rico reported that inbound air passengers rose by 18.7 percent during the year.
Personal consumption expenditures increased by 1.2 percent overall; services were up by 4.0 percent while spending on goods declined by 0.8 percent. Health care services and recreation-related “other services” drove the growth in service expenditures, while food and beverages saw a notable decrease of 6.2 percent due to price increases outpacing spending growth.
Net foreign travel had a negative effect on personal consumption expenditure growth because foreign travel expenses made by Puerto Rico residents exceeded nonresident expenditures within Puerto Rico.
Government spending increased across all levels—federal, central, and municipal—by a total of 4.8 percent, reflecting continued federal funding for disaster recovery after Hurricanes Irma and Maria (2017), earthquakes (2019–2020), and Hurricane Fiona (2022). Projects included improvements to infrastructure such as the power grid, aqueduct system, roads, bridges, and Camp Santiago operated by the National Guard.
Private fixed investment rose by 3.8 percent due mostly to purchases of industrial equipment like engines and turbines.
Private inventory investment fell primarily because of decreases in manufacturing sector inventories.
Imports climbed by 4.4 percent led again by pharmaceuticals and organic chemicals which increased imports of these goods by 6.0 percent.
Estimates for real GDP between 2018–2022 have been revised based on updated data sources including financial records from local agencies such as the Puerto Rico Department of State’s Registry of Corporations and Entities; business inventories; audited government financial statements; and shipment data from joint U.S.-Census Bureau/BEA trade reports.
According to BEA: “The revised estimates exhibit a pattern of inflation-adjusted GDP growth similar to the previously published estimates.”
This release marks BEA’s final production of annual GDP statistics for Puerto Rico; previous datasets remain available through BEA’s Data Archive.