Gross Domestic Product for Puerto Rico, 2020

1 year ago

Real gross home merchandise (GDP) for Puerto Rico decreased 6.0 percent successful 2020 aft expanding 0.2 percent successful 2019 (table 1.3), according to statistic released coming by nan U.S. Bureau of Economic Analysis (BEA). The alteration successful existent GDP successful 2020 chiefly reflected a alteration successful exports of equipment and services (table 1.4). Personal depletion expenditures, authorities spending, and backstage fixed finance besides decreased. These decreases were partially offset by an summation successful backstage inventory investment. Imports of equipment and services, which is simply a subtraction point successful nan calculation of GDP, declined.

Contributions to Percent Change successful Real GDP

Coronavirus (COVID–19) Impact connected nan 2020 Puerto Rico GDP Estimate

The Puerto Rico system was affected by nan COVID–19 pandemic owed to its effects connected spending by consumers, visitors, businesses, and governments. The Puerto Rico authorities implemented various measures to forestall nan dispersed of nan virus, including curfew orders and lockdowns of non-essential activities. The U.S. authorities passed respective laws to support and prolong businesses and individuals done nan pandemic. Expenditures funded by nan various national grants and transportation payments are reflected successful nan GDP estimates. However, nan afloat effects of nan pandemic cannot beryllium quantified successful nan GDP statistic for Puerto Rico, because nan impacts are mostly embedded successful root information and cannot beryllium separately identified.

Exports decreased 10.9 percent (table 3.3). Exports of equipment decreased 8.3 percent while exports of services decreased 22.7 percent.

The starring contributor to nan alteration successful exports of equipment was pharmaceuticals and integrated chemicals (table 3.4). Medical and technological instrumentality and appliances—which is embedded wrong user equipment and wrong superior equipment including parts—was besides a starring contributor to nan alteration successful exports of goods.
The starring contributor to nan alteration successful exports of services was recreation services, which includes equipment and services purchased by visitors. Exports of recreation services decreased 51.3 percent, mostly reflecting decreases successful cruise and aerial visitors owed to nan COVID–19 pandemic. Data published by nan Puerto Rico Institute of Statistics show nan full number of inbound aerial passengers decreased 51.9 percent; cruise vessel passengers reported by nan Puerto Rico Ports Authority decreased 72.5 percent.

Personal depletion expenditures decreased 1.8 percent (table 2.3), chiefly reflecting a diminution successful services (table 2.4). Food services and accommodations, "other"services (which includes services specified arsenic transportation, recreation, and education), and wellness attraction decreased, arsenic nonessential businesses passim nan territory were taxable to mandatory reductions successful operations owed to nan COVID–19 pandemic.

Government spending decreased 3.2 percent (table 1.3). Spending decreased among each levels of government, reflecting pandemic-related reductions successful operations and declines successful disaster betterment activities associated pinch nan 2017 hurricanes. Although cardinal and municipal authorities spending successful 2020 was supported by Coronavirus Relief Fund payments, prior-year spending was elevated owed to expenditures funded by national disaster grants.

Private fixed investment decreased 1.6 percent (table 4.2.3), chiefly reflecting a diminution successful structures finance (table 4.2.4). Within structures, residential structures finance decreased 14.4 percent, reaching nan lowest level of immoderate twelvemonth shown successful BEA's estimates (table 4.2.2). Nonresidential structures finance decreased 5.2 percent but remained astatine elevated levels, reflecting ongoing projects to rebuild and amended telecommunications infrastructure and edifice and lodging establishments.

The estimates of GDP and its components see accumulation owned by nonresidents, specified arsenic nonresident multinational enterprises. In Puerto Rico, subsidiaries of ample nonresident multinational enterprises run wrong nan pharmaceutical manufacturing manufacture arsenic good arsenic wrong nan aesculapian instrumentality manufacturing and machine services industries. The container "Exported Intellectual Property-Intensive Products Are Key Drivers of Puerto Rico GDP" successful nan "Technical Note" provides an update of investigation provided successful earlier releases that shows GDP excluding exports, imports, and backstage inventory finance associated pinch these intelligence property-intensive industries.

Updates to Puerto Rico GDP

Estimates of GDP and its components for 2017–2019 that were released connected September 27, 2021, person been revised to incorporated updates to root data.

Due to lags successful nan readiness of cardinal information sources utilized successful nan estimation of Puerto Rico GDP, nan statistic presented coming for 2020 are preliminary estimates. In summation to expected lags successful nan readiness of information for backstage inventory finance and cardinal authorities spending, different accusation typically published by nan Puerto Rico authorities was not disposable successful clip for incorporation into this year's estimates of GDP. As further root information go available, BEA will incorporated nan accusation and will merchandise updated estimates erstwhile a year.

For much accusation connected updates to antecedently published estimates and information availability, spot nan "Technical Note."

Acknowledgments

Because Puerto Rico is not included successful astir of nan awesome surveys utilized by BEA to estimate U.S. GDP, nan support and assistance provided by nan authorities of Puerto Rico has been captious to nan successful accumulation of these estimates. BEA appreciates nan accusation provided by galore organizations and individuals successful Puerto Rico, including (in alphabetical order) nan following: