Puerto Rico Compass ©

Q1 2012: Is Consumption Coming Back?

An analysis of 1st Quarter 2012 economic indices in PR

Since 2009, Puerto Rico has attempted to regain fiscal sustainability and market confidence. We have been staring into the headlights of a protracted economic recession without gradually realigning our economy to a sustainable position of economic growth. Despite high levels of unemployment and bankruptcies, there are signs that consumption may be coming back. Consumer expenditures run at about 90% of GNP in Puerto Rico, so consumption growth will play an important part in determining the pace of PR growth. This issue presents an analysis of HCCG’s economic indices for the first quarter 2012, with particular emphasis on consumption. Has consumption recovered to pre-recession levels of 2006? How have different components of consumption performed? How long is the path to complete recovery? Also, find out how other indicators, such as construction, have also posted positive growth during this quarter.