NJ’s Positive GDP for 2023 Shows Signs of Slowing

By Nikki Farber, Focus NJ Fellow On May 30, 2024

With GDP figures for Q4 2023 released, the U.S. Bureau of Economic Analysis has issued its comprehensive report. Most significantly, all 50 states enjoyed positive GDP numbers in the final quarter of 2023. 

Ten states enjoyed annual percentage changes of 4.5% to 6.7%. New Jersey was one of 13 states to experience a 3.1% to 3.6% change. 

While these numbers are positive, there are signs that New Jersey GDP is losing momentum. New Jersey’s gross domestic product generally has been increasing since the post-pandemic boom in 2020. However, the final quarter of 2023 presented a possible plateau in growth. 

GDP by Quarter. Real GDP in New Jersey increased significantly during the third quarter of 2023 with a percent change of 4.8%. That number decreased to 3.3% change in the fourth quarter, according to the newest data from the BEA. This number is almost on par with the 3.4% national average for Q4.

The lower GDP percentage for the fourth quarter also slowed New Jersey’s economic growth overall. The Garden State was the 22nd fastest growing economy in the third quarter of 2023 and dropped to the 28th spot in the fourth quarter. 

Industry Contributions. The industry that saw the most growth in the fourth quarter was in manufacturing nondurable goods, followed by retail trade. These sectors, followed by professional, scientific and technical services, waste management, and utilities had the greatest percent change in GDP for Q4 and represented the most growth for the Garden State. 

Economic Tracking. To provide the public with the latest information, Focus NJ continuously monitors various indicators of New Jersey’s economic health on our website at focusnj.org/economic-tracker. This interactive dashboard is regularly updated with the most recent data from sources such as the Census Bureau, Bureau of Labor Statistics, and the BEA. It offers users a dynamic tool for making state-to-state comparisons with data ranging from 2018 to today. 

To access more business news, visit NJB News Now.

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