Puerto Rico Economic Pulse ©

March 2001: Economic Challenges Ahead

An Analysis of Puerto Rico`s Economy in 2000 and Outlook for 2001 & 2002

If 1999 was marked by record growth in the economy, pushed by expenditures related to Hurricane Georges, year 2000 reflected a more down to earth note. Although the growth rate was not insignificant, certain developments and events characterized our economy during 2000 that will influence the near term prospects as well as the direction of economic policy. For instance, a reduction in the rate of growth of construction investment, rise in consumer prices, loss of manufacturing jobs, rapid increases in oil prices, and not the least, the results of the November elections both here and in the US. In a previous issue, we examined the economic implications of the general election for PR. Let`s find out in detail what happened in 2000 and the prospects for the immediate future.