Puerto Rico Compass ©

Q4 2013: Time to Get Creative

An analysis of 4th Quarter 2013 economic indices

Puerto Rico’s economy continues immersed in a recession that began in 2006 and continues today with high unemployment, low workforce participation, a declining population, and challenges facing its key pharmaceutical sector. At the start of 2013, Puerto Rico had a new Governor with hopes of a long-awaited change in all branches of the PR Government and the Island economy. As of 4Q 2013 and despite great efforts to spur the economy and reduce the central government’s fiscal deficit, the situation remains challenging and requires a commitment to action both from the public as well as the private sector. As the year ended, Moody’s announced it had a negative outlook on PR’s GO bonds and its decision to downgrade to speculative (junk) status would be revisited within 90 days. As of February 2014, all three rating agencies had downgraded PR”s GOs. An analysis of 4Q 2013 quarterly indices signals it is time to be creative regarding solutions to the economic and fiscal crisis.

Puerto Rico Economic Pulse ©

December 2013: In Search of a Business Advantage

Impact of knowledge services industry in the PR economy

At a time of slow growth and continued volatility, many countries are looking for policies that will stimulate growth and create new jobs. Information communications technology (ICT) is not only one of the fastest growing industries – directly creating millions of jobs – but it is also an important enabler of innovation and development. The European Union’s 10-year plan aimed to make Europe “the most competitive and dynamic knowledge-based economy in the world.” It failed. Find out why. PR badly needs both economic growth and job creation. In the past, several government sponsored strategic economic plans pointed the important role of the ICT sector for the Island’s economic development and competitiveness. However, PR continued lagging in key technological and connectivity indicators, trailing behind other formidable, direct competitors, such as Singapore, Ireland, and Denmark. This issue analyzes the real impact of technological readiness and the ICT industry on the PR economy. In our opinion, this industry constitutes one of the strategic sectors that can jumpstart this economy.