Puerto Rico Economic Pulse ©

June 2009: Let’s Not Forget Retirement!

What the current economic crisis entails for PR retirees

The current global financial and economic crises have generated major losses in banks; plunged stocks; blown up bankruptcies filings; escalated unemployment and beaten consumers’ pockets. But, there is another collateral damage that had not been completely realized. The collapse of stocks wiped out wealth and with it most retirement savings. As a result, one thing is sure for baby boomers on the verge of retirement: forget retirement! No doubt, many aging baby boomers will have to continue working past their traditional retirement age in order to enjoy the standard of living they dreamed. This is a dismal scenario but there are some positive outcomes too. This issue discusses how demographic pressures and the current economic crisis will affect our retirement plans.

Puerto Rico Compass ©

Q2 2009: Is the Worst over for Puerto Rico’s economy?

The good and bad news of the economic indices

During the first six months of this year, the PR economy posted negative numbers. How long will this last? Will recovery start soon? Governor Fortuño’s economic proposals combined with President Obama’s American Recovery Plan are expected to finally spur growth in the island but it will take time. Construction is still in recession but hopefully not for long. Manufacturing is also stalling and losing jobs. Banking is positive but close to zero growth. Overall, the consumer and the economy have posted negative results. The leading index does not augur a quick turnaround. The problem for the local government will not be a lack of money to increase investment and boost the economy. Instead, the challenge is how efficient, effective, and fast will it do it.