BETHLEHEM, Pa. — The humming you may have heard throughout the Lehigh Valley has nothing to do with birds of the same name.
It has everything to do with the region’s economy speeding in record-setting overdrive.
The Lehigh Valley’s Gross Domestic Product grew to a record $55.7 billion in 2023, according to the U.S. Bureau of Economic Analysis.
With manufacturing continuing to be a leading driver, the economy grew 4% from 2022, faster than the state, Northeastern United States and the nation.
The Lehigh Valley’s economy ranks 67th in the country — up from 68th in 2022.
“The steady growth of the Lehigh Valley’s economy in recent years is a testament to what can be accomplished when the public and private sector work together."Don Cunningham, president and CEO, Lehigh Valley Economic Development Corporation
The Bureau of Economic Analysis released the data this month.
GDP data is released a year after it is compiled.
“The steady growth of the Lehigh Valley’s economy in recent years is a testament to what can be accomplished when the public and private sector work together,” Lehigh Valley Economic Development Corporation Chief Executive Officer Don Cunningham said in a news release on Tuesday.
“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.”
Among top in the nation
The local GDP growth coincides with the Lehigh Valley being named the No. 1 mid-sized market for economic development in 2023 by Site Selection magazine, an authority in the corporate real estate and economic development fields.
The Site Selection ranking is based on the number of projects that meet criteria for size, job creation and financial investment.
Lehigh Valley manufacturing output rose to $9 billion — 16% of the region’s GDP and an increase from BEA’s adjusted 2022 figure of $8.2 billion.
It's also 4% higher than manufacturing nationwide.
Production of non-durable goods, such as food and beverages and consumer and health products, drove growth.
A key indicator of economic health, GDP measures the total monetary value of all goods and services produced during a specific period, usually a year or quarter.
The region also ranks as the 55th manufacturing market in the United States, an increase from 56th in 2022. It ranks among the top 15% of manufacturing markets in the nation.
Top contributors
The diverse manufacturing economy includes more than 700 companies producing a range of items such as semiconductors and other technology, medical and life sciences devices, food and beverages, consumer goods and plastics, among others.
Top contributors to Lehigh Valley GDP in 2023 (by billions):
- Manufacturing ($9)
- Finance, insurance and real estate ($8.7 plus; data partially suppressed by BEA)
- Education, healthcare and social assistance ($8.4)
- Professional and business services ($6.9)
- Retail trade ($3.8)
- Wholesale trade ($3.8 plus; data partially suppressed by BEA)
- Transportation and warehousing ($3.3)
- Information ($3.2)
The Lehigh Valley’s economy is larger than the economies of Alaska, Vermont and Wyoming.
If the Lehigh Valley were a country, it would be the 88th largest economy in the world.
