LEHIGH VALLEY, Pa.- The Lehigh Valley’s economy is looking more robust than ever, with a record-setting Gross Domestic Product (GDP) in 2023.
According to the Lehigh Valley Economic Development Corporation (LVEDC), that GDP grew to $55.7 billion last year, surpassing the $50.2 billion reported in 2022, which was a new record at the time.
The GDP measures the total market value of goods and services produced in a particular region. In this case, the information from the U.S. Bureau of Economic Analysis is the most recent data available, as GDP data lags by one year.
The LVEDC says, when factoring in inflation, the Lehigh Valley’s economy grew by 4% from 2022, faster than the state, the Northeast, and the nation.
“A GDP of more than $55 billion is an impressive number, but what’s more important is how that growth is driving up the quality of life for families. Wages are up. Household income is increasing. There are opportunities for everyone,” said LVEDC President Don Cunningham, in a news release.
Manufacturing continues to be a major driver of the Lehigh Valley’s economy. The LVEDC says manufacturing output rose to $9 billion in 2023, comprising 16% of the region’s GDP. That’s up from $8.2 billion in 2022. For the sake of comparison, nationwide, manufacturing makes up 12% of GDP.
According to the LVEDC, the Lehigh Valley is the 55th largest manufacturing market in the U.S., up one place from in 2022. It ranks among the top 15% of manufacturing markets in the nation.
Other top contributors to the Lehigh Valley’s GDP are:
– Finance, Insurance, and Real Estate ($8.7B+)
– Education, Health Care, and Social Assistance ($8.4B)
– Professional and Business Services ($6.9B)
– Retail Trade ($3.8B)
– Wholesale Trade ($3.8B+)
– Transportation and Warehousing ($3.3B)
– Information ($3.2B)
The GDP increase caps a year of positive economic headlines for the Lehigh Valley in 2023. It was also named the number one mid-sized market for economic development by Site Selection magazine.
And here are two more good-news tidbits, courtesy of the LVEDC:
The Lehigh Valley’s economy is larger than the economy of three states: Alaska, Vermont, and Wyoming.
And, if the Lehigh Valley were a country, it would be the 88th largest economy in the world.