Economic Development Bank for Puerto Rico (EDB) Reports Positive Growth in Economic Activity Index (EAI) for 2023

The Economic Development Bank for Puerto Rico (EDB) has reported positive growth in economic activity for the third consecutive year, with the average Economic Activity Index (EAI) increasing by 2.7% in 2023 compared to the previous year. The EDB-EAI for FY2023 also saw a 2.4% growth versus FY2022, indicating a steady improvement in the island’s economic performance.

According to EDB President Luis Alemañy González, the positive trend in economic activity is reflected in the EDB-EAI tool, which measures the general behavior of Puerto Rico’s real gross product. The index showed growth in nonfarm payroll employment and electricity generation, while cement sales and gasoline consumption saw declines in March 2024.

The EDB-EAI is a coincident index that provides a snapshot of economic activity on the island, with components including non-agricultural salaried employment, electric power generation, gasoline consumption, and cement sales. The index has shown consistent year-over-year growth, with the latest increase marking the 28th successive year-on-year increase.

The EDB recently conducted an annual revision of the EAI, which included adjustments to seasonal factors and data validation. Despite some downward revisions in non-farm wage and salary employment numbers, the overall Economic Activity Index remained positive, indicating continued growth in Puerto Rico’s economy.

Overall, the EDB’s report highlights the resilience and progress of Puerto Rico’s economy, with positive indicators pointing towards a promising future for the island’s economic development.