Puerto Rico Compass ©

Q2 2010: Strike to the Economy

An analysis of 2nd Quarter 2010 economic indices in PR

Puerto Rico’s second quarter has been characterized by media coverage on the consolidation in banking sector where three troubled local banks were acquired by other banks in an FDIC assisted transaction. The second big issue was the two-month students’ strike at the University of Puerto Rico (UPR). It had huge economic implications. At the economic sectors level, construction continues to pull the economy downwards while a cautious banking sector continues to tighten credit. The Public Private Partnerships have not started yet but they still ignite positive expectations for the near future. Amidst this bleak outlook, some good news emerge, mainly positive consumer spending and new, though more long term, announcement of investments in the tourism sector.