Tag: Economy

In our previous issue, we explored how the pharmaceutical industry in Puerto Ricocontributed to the overall economy in terms of production, exports, investment, jobs, and compensation. This issue links the industry to innovation and technology as well as its contribution to the community and the environment. As before, these facts come from government published data as well as from a survey sponsored by the Pharmaceutical Industry Association (PIA) in PR. Find out how Puerto Rico is on the cutting edge of pharmaceutical production with the latest technologies, processes, and latest generation in drugs and why is the pharma industry heavily involved with higher education in Puerto Rico.

The pharmaceutical industry has been in Puerto Rico for over three decades, in good and not so good times. Yet, in every instance, the industry has contributed to production, jobs, compensation, and technology. It is well known as one of the largest exporters on the Island. Check the facts of how the pharmaceutical industry has contributed to the economy, to human resources, to innovation and technology, and finally, its support to the community and the environment. This and the forthcoming issue of Economic Pulse highlight the contribution of a successful industry to the Island’s economy.

A tough year is ending. The saga of 2001, a year marked by terrorism and battered stock markets, has lasted more than expected. PR’s economy has not been indifferent to a jolted US economy and a phantom of recession and deflation hanging all over the world.It has been a hard year for the island, featuring higher excise taxes, less tourists, higher unemployment, and a great effort by the government to crank the economy by investing in public infrastructure. Find out what were the foremost developments of this year, what happened to important sectors, such as manufacturing and construction, and a search for a vision for the next decades.

As in other parts of the world, Puerto Rico’s population is growing older. Dramatic structural changes in population pose a big challenge to the public sector and overall society.  Social security programs, health services, public finances: the effects of these changes will touch every component of our society. In this issue, we focus on the evolution of the older segment of population, people aged over 65. We briefly portray our elderly people and analyze the implications of having an older population. Find out whether gender has an impact on this group; how wealthy or poor they are; who bears the burden of an aging population. Will PR be able to meet some of the challenges lying ahead.

Conducting a Census is the best way to portray a country. It lets us know where we come from and where we are going, what we are and what we need. The 2000 Census of Population sheds light on the most important socioeconomic features of Puerto Rico, in some cases confirming already well known trends, but also disclosing unknown facts. Find out how age poses economic as well as social challenges; how demographics impact housing and car sales. This edition examines some of the most recent and relevant demographic issues Puerto Rico faces and their implications for the Island economy in the short as well as the long run.

For the US economy, the booming 1990`s have gone and the ensuing short recession is now almost over. On the whole, analysts are persuaded that there is a strong causal link between business investment on information technology and labor productivity. The thinking is that cheaper computer capital replaced more relatively expensive non-computer capital to the extent that the production process allowed. Is that so? Have computers been the whole story of the 90`s investment expansion? And to what extent has business investment activity been quantitatively and qualitatively different from past cycles? Will investment drive the US recovery? Let`s examine these questions.

As of 2001, there were over two million motor vehicles registered in Puerto Rico, equivalent to 1.7 persons per vehicle. According to industry experts, Puerto Rico is a perfect place to introduce new products. Although sales of new vehicles have grown at an annual rate of 1% between 1995 and 2001, the levels of the last two years exceeded those of 1995. Despite an economic slowdown, local consumers bought 123,000 new units, similar to the level of 2000. Find out why the love affair of Puerto Ricans with cars. How is the car market distributed among car makes? Will this trend be sustainable in light of the new car excise taxes, effective July 2002?

Euro has completed its first stage. Three years after being launched, the European currency seems to leave behind a stormy start and its second stage is under way. National currencies of the member countries have been withdrawn and notes and Euro coins have come into circulation. Undoubtedly, the U.S dollar has found a tough rival which poses a serious challenge as the predominant worldwide currency. This issue of Economic Pulse briefly reviews the evolution of Euro since its birth, the dimensions of its market, and the consequences for financial markets. Find out how this process will affect Puerto Rico. It is time to demonstrate that the positive effects of this new giant far outweigh its potentially negative consequences.

As the 2000 population census has confirmed, Puerto Rico is undergoing a demographic transformation. Following the pattern of developed countries, the Puerto Rican population is aging. In this article we will address this interesting phenomenon, which is a clear proof that development is not just about prosperity and also has its bitter side. Let`s briefly review the evolution of the island`s population over the last half century and analyze its economic and social consequences in the short as well as the long run. Find out how an aging population can exhaust fiscal revenues; how health and other related services will be more demanding on already finite resources.

Revenues are key to a budget. Without them there can be no budget, and how to obtain them particularly in times of economic constraints such as now, presents a challenge. The previous issue analyzed how the Government of Puerto Rico got into a structural imbalance. Combined with the economic slowdown, this situation has generated a shortfall of revenues. Both the Executive and Legislative branches have been proposing new sources of revenues. A key issue in the proposed budget for fiscal 2002-03 is how to obtain $596 million in additional revenues. The bulk of the discussion focused on proposed significant increases in excise taxes on alcoholic beverages, cigarettes, and selected types of autos. Find out how increases on alcoholic beverages will impact the economy and how the government refused a better alternative.