Puerto Rico Economic Pulse ©

January 2013: Farewell to the Economy in 2012

Setting the stage for what lies ahead in Puerto Rico’s economy in 2013

Worldwide, year 2012 was dangerously tough, with a threatening break-up of the euro zone and economic recession in several countries; political gridlock in the US as the fiscal cliff approached and resulted in self-induced stagnation; and Puerto Rico deep in economic depression and divisive politics. The good news is that, contrary to popular belief in the Mayan prophecy, the world did not end in 2012. However, watch out for 2013 since the economy will continue to be a worry everywhere. Puerto Rico may have reasons to fear a year with the number 13 in it but it might not be so bad after all if the new Administration finally starts implementing a cohesive vision and multi-year economic plan for the island economy; convinces bond rating agencies and investors that Puerto Rico is still a great opportunity; and then executes the plan. This issue examines the most important economic highlights of the past year and sets the stage for the economy in 2013.