March 2010: Many Headwinds Still Ahead

Fiscal 2009 marked a milestone with the harshest worldwide economic crisis since the Great Depression. The crumble of several financial giants at the end of 2008 sparked a crisis that ripped through the entire world with unknown strength.  Recovery has already started in the US mainland, but jitter and fear have not disappeared. Puerto Rico has also felt the heat and is immersed in a protracted slump that threatens to extend to five consecutive years.  The truth is that the PR economy remains off the path of sustainable growth and desperately needs to restore growth.  Some meager gains, mostly as a result of temporary inflows from the mainland, could mislead the public regarding the dismal situation of our economy. This issue of Pulse analyzes what really lies beneath the recent glimmer of hopes. It evaluates economic events in fiscal 2009 and presents our forecasts thru fiscal 2012.