Puerto Rico Economic Pulse ©

April 2006: Thrills and Spills

Economic impact of leisure activities in Puerto Rico

Back in 2000, E-entertainment captured the imagination of millions. The vision of unlimited bandwidth attracted billions of dollars of investment into the Internet. But for some businesses such as music it is still difficult to find a way of persuading people to pay for it. Have consumers in PR caught up with the digital era as entertainment or do we use our time in other real live activities? As the social and economic structure of Puerto Rico changes, our entertainment choices have become outdated. The average Puerto Rican has limited options of entertainment activities. Our analysis shows there is room for change with an economic potential that has not yet been harnessed. Is the market up to the task?

Puerto Rico Economic Pulse ©

March 2006: On the shoulders of consumers

A review of the PR economy in fiscal 2005 and forecasts for 2006 to 2008

Fiscal and calendar 2005 are both over. What seemed a cloudy year ended with some surprising outcomes. The resilient Puerto Rican consumers overcame skeptical forecasts, and kept the economy on track. High oil prices, fiscal woes, higher short term interest rates and jitters in the banking sector were no match for PR consumers. How solid is this growth? Can consumers continue to carry the economy forever? Can the government eventually balance the budget? Those are some of the questions we should answer to predict the future course of the PR economy. Join us in reviewing both, the main economic events in fiscal 2006 and our forecasts up to 2008.

Puerto Rico Economic Pulse ©

February 2006: It is time for answers

An economic analysis of PR’s tax reform proposal

Under the watchful eyes of the credit rating agencies, a reshaping of our tax system has been proposed. Here we consider, the effects on several critical economic variables, including investment, consumption, and government spending, implicit in the new plan. We also point out some unanswered questions about the tax reform proposal. It is surely time for the elected representatives of all the political parties to ask whether the proposed measures do offer hope of dealing effectively with crucial problems facing Puerto Rico. Although we do not have all the answers, we feel that the important questions have been left out of the debate. Specifically, who is the biggest winner, and who will lose out?

Puerto Rico Economic Pulse ©

January 2006: The Emergence of Chindia

A clear and present danger for Puerto Rico

China and India have become the new growth poles in the world economy. With more than one third of the world population, both economies possess enough dynamism and weight to transform the global economy. The world had never seen a simultaneous takeoff of two countries that combine their strengths well enough to challenge the US economy dominance.  By mid century, China is expected to take the #1 position from the US and India will be the third biggest world economy ahead of Japan. If these two countries converge into the Chindia Region, they will take over the world tech industry. With such challenges ahead, how does Puerto Rico stand in this new world order and what will it take to compete?