Puerto Rico Compass ©

Q2 2010: Strike to the Economy

An analysis of 2nd Quarter 2010 economic indices in PR

Puerto Rico’s second quarter has been characterized by media coverage on the consolidation in banking sector where three troubled local banks were acquired by other banks in an FDIC assisted transaction. The second big issue was the two-month students’ strike at the University of Puerto Rico (UPR). It had huge economic implications. At the economic sectors level, construction continues to pull the economy downwards while a cautious banking sector continues to tighten credit. The Public Private Partnerships have not started yet but they still ignite positive expectations for the near future. Amidst this bleak outlook, some good news emerge, mainly positive consumer spending and new, though more long term, announcement of investments in the tourism sector.

Puerto Rico Economic Pulse ©

June 2010: Another Puerto Rico is Possible – Part I

An analysis of current economic crossroads

The Puerto Rican economy is in the midst of a long and deep recession, which is expected to leave permanent effects on the Island’s economy. In this sense, much remains to be seen given existing economic trends and public policies as well as the limited impact of what traditionally have been PR’s engines of growth, what can we conclude about the island’s economy. In our opinion and despite all the negatives, it is still possible to transform Puerto Rico. This first issue of a two part series takes a look at some of the main concerns and provides a long-term view of key economic variables that shed light on the structural causes of the current situation. Some of these effects were clearly imposed on the PR economy. Others were not. Find out what these are and how they could evolve if public policy does not deal with them. Part II (July issue) will examine the business models and consumer of the future, as well as emerging economic opportunities.