Puerto Rico Economic Pulse ©

April 1998: Should we worry when Bankruptcies Skyrocket?

The 45% increase in bankruptcy filings in 1997 and the continuation of this pattern appears to indicate our level of indebtedness is beyond reasonable limits.  This phenomenon has raised concerns regarding the health of our economy.  However, this trend is not unique to Puerto Rico and in fact, there are more bankruptcies per capita in the US than in PR.  Explanation of this surge in bankruptcies is not as simple as over-consumption.  Contents of this issue explore consumer confidence and baby boom demographics among the main factors behind this trend.