GDP in Lehigh Valley hits record in 2022; LVEDC says region would be 88th largest economy in world if it were country
The gross domestic product in the Lehigh Valley hit a record in 2022.
The Lehigh Valley Economic Development Corporation said Tuesday the region's GDP grew to $50.2 billion in 2022, "with manufacturing continuing to be a leading driver."
The Valley's economy grew by about 1% from 2021, when factoring in inflation, according to data released by the U.S. Bureau of Economic Analysis on Dec. 7.
Among regions of similar size (200,000 to 1 million), the region is a Top 15 market for GDP and ranks 68th largest of all regional economies in the country, according to a news release from the LVEDC.
The LVEDC says it tracks the GDP across the metro region, which comprises Lehigh, Northampton, Carbon, and Warren (NJ) counties. GDP measures the total market value of of the goods and services produced in a region over a year.
The Bureau of Economic Analysis, an agency of the U.S. Department of Commerce, reports regional economic output annually with a one-year lag.
The LVEDC says manufacturing output rose to $8.1 billion, comprising 16% of the region's GDP. That's an increase from BEA's adjusted 2021 figure of $7.3 billion, the LVEDC said.
Nationwide, manufacturing makes up 12% of GDP.
The region's manufacturing output, from about 700 companies, ranks the region as a Top 20 market when compared to regions of similar size, and 56th nationally when compared to all metro regions, according to the news release from LVEDC.
The LVEDC says other leading contributors to the region's GDP were: finance, insurance, and real estate; education, health care, and social assistance; and professional and business services.
Since 2017, the region's GDP has grown by about $10 billion, the LVEDC said.
According to the LVEDC, a growing population is one of the factors driving the Lehigh Valley's economic growth. More people living in the Valley increases the workforce and provides companies with the skilled labor that they need to compete in a global economy, the LVEDC said.
The LVEDC notes that the Lehigh Valley is within a one-day drive of one-third of the U.S. population and is near regional ports and international airports, making it easy for producers to get their products to market.
The LVEDC says the region's economy is larger than the economy of two states, Vermont and Wyoming. If the Lehigh Valley were a country, it would be the 88th largest economy in the world, the LVEDC said.