Real gross domestic product (GDP) for Puerto Rico decreased 2.5 percent in 2022 after increasing 4.1 percent in 2021, according to statistics released today by the U.S. Bureau of Economic Analysis
The decrease in real GDP in 2022 reflected an increase in imports—which are a subtraction item in the calculation of GDP—as well as decreases in private fixed investment and exports. Personal consumption expenditures, private inventory investment, and government spending increased.
Real imports increased 7.3 percent, reflecting an increase in imports of goods. The increase was led by pharmaceuticals and organic chemicals, which increased 21.7 percent. This growth in imports of pharmaceuticals and organic chemicals, which are primary inputs of the pharmaceutical manufacturing industry, outpaced the growth in that industry’s exports.
Real private fixed investment decreased 4.6 percent. Investment in intellectual property products decreased 24.7 percent, while investment spending on equipment and structures increased 4.3 percent and 2.1 percent, respectively.
- For Puerto Rico, investment in intellectual property products largely consists of research and development spending by computer service providers and other businesses.
- The leading contributor to the increase in investment in equipment was information processing equipment, which includes purchases of medical instruments by businesses.
- The leading contributor to the increase in structures was nonresidential structures, reflecting ongoing projects to expand renewable energy generation.
Real exports decreased 0.3 percent, reflecting a decrease in exports of services that was partly offset by an increase in exports of goods. Exports of services decreased 14.6 percent, while exports of goods increased 2.9 percent.
- The leading contributor to the decrease in exports of services was “other services,” which includes computer services. This decrease was partly offset by exports of travel services, which includes purchases of goods and services by tourists and other nonresidents in Puerto Rico.
- The leading contributor to the increase in exports of goods was pharmaceuticals and organic chemicals, which increased 2.6 percent.
Real personal consumption expenditures (PCE) increased 2.2 percent. PCE services increased 5.5 percent, while spending on PCE goods decreased 0.7 percent.
- The increase in PCE services reflected widespread growth. The leading contributor to the increase was “other services,” which includes recreation services, such as live entertainment.
- The leading contributor to the decrease in PCE goods was motor vehicles and parts. According to statistics published by the Economic Development Bank for Puerto Rico, unit sales of motor vehicles decreased 4.3 percent in 2022 after increasing 35.9 percent in 2021.
Real private inventory investment increased. The largest contributor to the increase was the manufacturing sector.
Real government spending increased 0.4 percent, reflecting increases in investment spending by federal, central, and municipal governments. The increases in government investment spending reflected growth in disbursements of federal funds for disaster recovery activities associated with Hurricanes Irma and Maria in 2017, earthquakes in 2019 and 2020, and Hurricane Fiona in 2022.
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