Puerto Rico Economic Pulse ©

January 2009: Has the Shopping Frenzy Halted?

An analysis of the Retail Sales Market in PR

The economic downturn in the US is halting growth in the rest of the world. This negative shock has affected adversely consumption and retail sales in the US mainland. PR is in its 3rd year of recession but retail sales appear not to have performed as negatively as in the US. Consumers in the island appear to be resilient and some retailers have expanded while other new retailers have started operations in the island. Credit tightening adversely affects consumer spending so this must be resolved if retail sales and consumption are to resume growth in the short run. Find out what happened to retail sales during fiscal 2008 and what is forecasted for fiscal 2009 and 2010. The presence of certain megatrends provides important insights about the changing Puerto Rican marketplace.