Puerto Rico Compass ©

Q1 2011: We Hope and Wait

An analysis of 1st Quarter indices of the PR economy

Economic indices are hitting a soft patch as business and consumers struggle to cope with rising energy and food costs as well as continued concerns regarding further weakening of the global economy. Both here and in the US mainland, economic news continues to dampen optimism regarding a quick and substantial economic recovery. The consumption rebound of 4Q 2010 with healthy new car sales bottomed again this quarter. We hope for less job losses in manufacturing and other economic activities but the reality of this quarter is otherwise. We hope for less rising energy costs and less federal spending cuts but the debate in Congress continues to unravel for political gain. And we wait locally for the start of the Public Private Partnerships, the expected positive effects of the tax and permitting reforms, and more lending from banking.