Puerto Rico Compass ©

Q1 2010: Curb your Enthusiasm

An analysis of 1st Quarter 2010 economic indices in PR

At the start of 2010, many were hoping to leave behind the longest recession in recent history in Puerto Rico. During the 1st Q of 2010, there are some signs of improvement in consumption, but we hasten to add that there are many structural problems that still worry us. Some of these bewildering trends include: the situation of the banking industry, the island’s huge public debt, a troubled PR Retirement System, and a low labor participation rate, among others. Consumer and producer sentiments do impact economic activity so perceptions are just as important as hard-core economic data. In this context, clear and credible economic policies adopted by the public sector can play a leading role in economic recovery in PR. This issue examines how recent developments both in and outside Puerto Rico have impacted the HCCG indices and how upcoming events could influence the economy in the near future.