Puerto Rico Compass ©

Q4 2007: When Will the Recovery Begin?

As discussed in the previous Compass, the HCCG Coincident Index showed a continuation of the recession that started in Puerto Rico since Q3 2006. The last quarter of 2007 depicts negative figures again, but the magnitudes have improved in most of the indices. The leading index dropped in Q4, and the banking index depicts timid growth. Find out how tourism and exports bring hope; how the Puerto Rican consumer survived the holiday season; and what issues concerned households at the end of 2007. A closer look at these indices will indicate how this election year affects the economy and addresses the question that concerns all of us: when will the recovery begin?

Puerto Rico Economic Pulse ©

December 2007: The Hope for a Second Miracle

A historical review of the PR economy and challenges ahead

Praised as an economic miracle in Latin America, Puerto Rico’s economy has undoubtedly lost steam. The same island that pulled off an amazing transformation in just two decades, is now struggling to get back on a steady path of growth. The economic model is showing fatigue and former recipes that once fostered investment and development, seem ineffective nowadays. This issue briefly reviews the long uphill path of PR, from the dawn of industrialization to an economy burdened by debts, unemployment, and an overweight public sector. This is the story of a spectacular rise, slowdown, recession, and the hope for a second miracle.