Positives for NJ in Recent GDP Figures

Focus NJ

By Kyle Sullender, Executive Director of Focus NJ  On Feb 29, 2024

Although New Jersey enjoyed a strong 2022 overall in terms of GDP growth, the final quarterly figures released for the year (Q4 2022) and the first set for 2023 (Q1 2023) pointed to potential changes in the state’s fortunes. However, data recently released by the U.S. Bureau of Economic Analysis (BEA) show the state rebounded in 2023 as the year progressed.

GDP by Quarter: In Q2 and Q3 of 2023, New Jersey’s GDP grew by 2.3% and 4.8% from the preceding quarter, respectively, according to preliminary figures from BEA. New Jersey’s growth narrowly surpassed or trailed that of the nation as a whole in both quarters, 2.1% and 4.9%, respectively, and was strong enough to finish in a tie with several other states for the 22nd fastest growing economy in the third quarter of the year.

The Garden State was bedeviled in 2023 by rising unemployment and had finished three of the previous four quarters ranked in the bottom 10 nationally for GDP growth. Meanwhile, the state’s labor pool and labor participation rate, which had been rising, fell in back-to-back months for the first time since 2021 to close the year. Against this backdrop, these relatively strong quarters for GDP come as especially welcome news.

Industry Contributions: The real estate, rental and leasing industry continues to be the largest contributor to the state’s GDP as of Q3 2023, representing nearly 16% of the state’s total GDP.

Professional, scientific, and technical services accounted for the second largest segment (11.1%), followed by government and government enterprises (9.3%), healthcare and social assistance (8.8%), and manufacturing (8.1%).

Economic Tracking: To help bring up-to-date information to the public, Focus NJ tracks these and other measures of New Jersey’s economic performance on our website at focusnj.org/economic-tracker. The interactive dashboard is updated whenever new data is available to reflect the latest economic figures from the Census Bureau, Bureau of Labor Statistics, BEA, and others. The dashboard is fully interactive and allows for comparisons between states as far back as 2018. 

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