Economic Forecast

Mar 2017: Sink or Swim Puerto Rico

Analysis of PR’s performance in 2016 & forecast for 2017 – 2019
Today, after 11 years of economic recession, external and internal events pose further challenges to the Puerto Rico economy. China’s deceleration, the exit of UK from the European Community, Trumps’ election in the US, and terrorist attacks in 2016 do not augur strong external demand for PR’s exports in coming years. The establishment of the Financial Oversight and Management Board (FOMB), a euphemism for a control board, in PR was the most important event in 2016, together with the election of Governor Rossello. In a time of uncertainty, peering 3 years into the future may seem a daunting task. It is, but, ignoring trends—demographic, economic, corporate—is not an option. Understanding the immediate future in PR is vital in ensuring that business and hopefully, government strategies are sustainable, that opportunities are identified, and that challenges are addressed to exit stagnation. This Pulse explores recent economic events in 2016 and forecasts 2017 thru 2019.