Puerto Rico Compass ©

Q1 2008: Living in Recessionary Times

If our six economic indices were alarm lights, we would have five red lights blinking. The worst performances occurred in the construction and consumer indices. This last indicator is worrisome since consumption is a big chunk of GDP and affects directly other sectors. An economy in recession, high-energy prices, and job losses plus the uncertainty generated by an upcoming election are some of the causes. Find out what measures have been taken by consumers to mitigate recessionary effects, how Fed interest rate cuts could generate some relief for investors, and what positive factors need to take place in order to overcome this recession, which refuses to disappear in coming months.