NOAA Report: US Marine Economy Contributes $432 Billion to GDP

Key Facts

GDP contribution: $432 billion (1.9% of US GDP)
Jobs supported: 2.4 million
GDP growth from 2020: 4.2% increase
Job growth from 2020: 4.6% increase
Largest employer: Tourism and recreation (1.7 million jobs)
Top GDP contributor: Offshore minerals ($124 billion)

Background

The National Oceanic and Atmospheric Administration (NOAA) released a new report on June 8, 2023, detailing the economic contribution of the nation's marine economy. The report, produced by NOAA's Office for Coastal Management, uses data from 2021 to assess the impact of ocean-related industries on the American economy.

The marine economy encompasses a wide range of sectors, including commercial fishing, tourism and recreation, shipping, and offshore energy. NOAA's analysis aims to provide a comprehensive picture of how these industries contribute to national prosperity.

Current Situation

According to the report, the marine economy contributed $432 billion to the U.S. gross domestic product (GDP) in 2021, accounting for 1.9% of the nation's GDP. This represents a 4.2% increase from the previous year, signaling a recovery from the pandemic's economic disruptions.

The sector supported 2.4 million jobs in 2021, a 4.6% increase from 2020. Tourism and recreation remained the largest employer, accounting for 1.7 million jobs, while offshore minerals, including oil and gas, contributed the most to GDP at $124 billion.

Other significant contributors included ship and boat building, which added $53 billion to GDP, and marine transportation, which contributed $51 billion. The report also highlighted growth in emerging sectors such as offshore wind and marine aquaculture.

US Marine Economy by Sector (2021)
Sector	GDP Contribution (billions USD)	Jobs (millions)
Offshore minerals	124	0.1
Ship and boat building	53	0.3
Marine transportation	51	0.2
Tourism and recreation	Not specified	1.7

Data from NOAA report; some values not specified in source.

Impacts

The report's findings underscore the marine economy's role in supporting coastal communities and the national workforce. The 2.4 million jobs supported by the sector provide livelihoods for workers in states like California, Texas, and Florida, which have large coastal populations.

The growth in tourism and recreation indicates a rebound in travel and leisure activities, benefiting local businesses and state tax revenues. Meanwhile, the significant contribution of offshore minerals highlights the ongoing importance of traditional energy industries, even as the nation transitions to renewable sources.

The data also points to potential opportunities in emerging sectors. For example, the report notes that offshore wind and marine aquaculture are growing, which could diversify the marine economy and create new jobs in the future.

Future Outlook

Scenario analysis: The possibilities below are not certain predictions.

Looking ahead, the marine economy's trajectory will depend on several factors. If the tourism and recreation sector continues to recover, it could sustain job growth and further boost GDP contributions. However, this may be tempered by environmental challenges such as coastal erosion and extreme weather events.

The expansion of offshore wind and marine aquaculture could provide new economic opportunities, but their growth will depend on policy support and technological advancements. If these sectors develop as expected, they could offset declines in traditional industries like offshore oil and gas.

Overall, the marine economy is likely to remain a vital component of American prosperity, but its future will be shaped by both market forces and environmental sustainability efforts. The report provides a baseline for monitoring these trends in the years to come.

Source: NOAA National Ocean Service

AMRIT EXPLAINER