Portland GDP Growth Ranks 10th Fastest Among 100 Largest Metros

Portland GDP Growth Ranks 10th Fastest Among 100 Largest Metros

by Amy Vander Vliet

October 18, 2016

The Portland metro area's real Gross Domestic Product (GDP) grew 4.6 percent in 2015, according to the Bureau of Economic Analysis. This was the 10th-fastest growth rate among the nation's 100 largest metro areas, and nearly twice as fast as for all metro areas combined (2.5%).

GDP measures the total market value of final goods and services produced in a given region over a specified period of time. It's a comprehensive and widely used measure of economic activity.

Durable goods manufacturing was the number one driver of Portland's GDP gains in 2015, contributing 1.6 percentage points to growth. Only two other large metros relied more on this sector for their GDP growth: San Jose and Raleigh. The Portland metro area derives a disproportionately large share of its GDP from manufacturing: about 25 percent, or more than twice the national share. Why? Our large computer and electronic equipment manufacturing component (e.g., semiconductors). These manufacturers generate an unusually large amount of added value to their products and invest heavily in R&D.

Professional and business services was the second largest source of growth locally, and number one nationally. In Portland, it contributed 1.2 percentage points to GDP growth. Within this large and diverse industry, company headquarters and miscellaneous professional, scientific, and technical services likely contributed significantly to gains.

For more information on GDP, visit the Bureau of Economic Analysis.