Puerto Rico Economic Pulse ©

March 2008: Issue #1: The Economy

Performance of the US and PR economies in fiscal 2007 and forecasts to 2010

Undoubtedly, the PR economy is going through its worst time in the past twenty years. The poor performance in 2006 proved to be just the preamble of a lingering recession. The onslaught is coming from every direction: budget shortfalls, exhausted consumers, skyrocketing oil prices, gridlock between the Executive and the Legislature, anemic housing market and, to make matters worse, an economic slowdown in the US. With recession also looming in the mainland, the much-needed relief for Puerto Rico does not seem to be around the corner. This issue reviews the performance of both the US and the island’s economy in fiscal 2007. It also includes HCCG forecasts up to 2010, and surmises on the most likely scenarios and challenges ahead for PR.  This is an election year and the number one issue has to be the economy.