Puerto Rico Compass ©

Q2 2013: Is the PR Economy on Life Support?

An analysis of 2nd Quarter 2013 economic indices

Even if the PR economy is only going through a transition, it is an extremely painful one for many. Employment trends have polarized the workforce and hollowed out the middle class. Poor job growth is still the result of a sluggish economy. Will the pressure on employment and the resulting inequality only get worse? As this issue of Compass reveals, economic fundamentals still continue to underperform after 7 years of economic recession. Many worry that even with robust demand, the construction sector will continue to struggle with underutilized capacity. Manufacturing is barely holding. We continue to expect a weak economy, burdened by the collection of new taxes. Consumer confidence is weak as rising gasoline, electricity, and water prices pull future spending to lower levels. While the banking index is not back to pre-recession levels, the recent gain is positive. Growth is likely to still lag behind most previous recoveries.