Puerto Rico Economic Pulse ©

March 2005: Whatever It Takes

A review of the PR economy in fiscal 2004 and forecasts for 2005 to 2007

Fiscal 2004 closed with the highest rate of growth since 2000. Although far from spectacular, the economy performed well with significant gains in many aspects. However, the happiness will not last too long since the economy is expected to decelerate slightly this year. The PR economy will operate in a global context featuring growth, but also a big uncertainty stemming from the island’s huge public debt, trade deficit in the mainland, and a battered dollar. The Puerto Rico economy will have to fight its way, through a structural deficit and new increases in taxes. Find out how the economy will perform through 2007, what setbacks it could face, and what will it take to overcome them.