Puerto Rico Economic Pulse ©

March 2006: On the shoulders of consumers

A review of the PR economy in fiscal 2005 and forecasts for 2006 to 2008

Fiscal and calendar 2005 are both over. What seemed a cloudy year ended with some surprising outcomes. The resilient Puerto Rican consumers overcame skeptical forecasts, and kept the economy on track. High oil prices, fiscal woes, higher short term interest rates and jitters in the banking sector were no match for PR consumers. How solid is this growth? Can consumers continue to carry the economy forever? Can the government eventually balance the budget? Those are some of the questions we should answer to predict the future course of the PR economy. Join us in reviewing both, the main economic events in fiscal 2006 and our forecasts up to 2008.