Puerto Rico Economic Pulse ©

June 2002: The Bitter Side of Development

Macroeconomic and Fiscal Impact of Population Trends

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.