Q3 2014: Puerto Rico, The Sum of its Parts

Puerto Rico’s economic situation raises serious questions about the capacity of policymakers to get the situation under control. Third quarter indices reveal a mixed picture. The economy continues to be stagnant. Full recovery will depend not only on internal but also on external factors originating in the US and other global economies. There is increasing dissatisfaction with local economic policies, escalating electricity prices, and persistently high unemployment. These factors, together with safety concerns and pessimism about the economic future have motivated mass migration to the US. Government has focused principally on the island’s fiscal issues, including liquidity concerns regarding the Government Development Bank (GDB). However, a perfectly balanced budget will mean nothing amidst a devastated economy. This issue addresses the urgent v. important economic issues and tracks the 3Q of the PR economy.