Puerto Rico Compass ©

Q4 2014: Another Turbulent Year

A year in review of 2014 quarterly economic indices in PR

Without a doubt, 2014 was another turbulent year for the PR economy. Businesses and households sadly miss the stable growing years of the late 80s and 90s. This continued state of crisis impacts householders’ and business owners’ peace of mind. Many households have lost confidence in the PR recovery and consequently, they are migrating to the US. Some businesses also are leaving the island given the uncertainty caused by proposed legislation, such as the tax reform or other laws, such as the “patente nacional” that have been approved in light of the ongoing fiscal crisis in PR. Of course it is easier for a US based firm to leave PR than for a “criollo” firm. This migration has the effect of reducing the tax base, and reinforces the continuation of the fiscal crisis. Yes, 2014 was another turbulent year with more bad than good economic news. Find out what happened to the economy in 2014 and what 2015 may entail.