Puerto Rico Economic Pulse ©

July 2015: PR’s Future is Nearing Its Hour of Truth

The Island’s economic prospects are being reshaped by the day

A series of rapidly developing events are drastically—but not unexpectedly—reshaping PR’s development and growth possibilities. In all likelihood, the end result of the ongoing negotiations will impose strict limitations to the government’s ability to play an active role in the economy, a dramatic shift from its historical role. As a result and for the first time in PR’s modern economic history, the market will largely and freely drive economic activity in the Island. This may not be all that bad. In fact, the emerging landscape should be populated by competitive albeit small businesses, some of which will supply foreign markets. Furthermore, the economy will tend to reallocate its resources to those areas in which it can produce with competitive—and comparative—advantages and it is in this sense, that the current crisis is nurturing future opportunities. The road for the next decade may be bumpy but rewarding.