Puerto Rico Economic Pulse ©

April 2011: Global Threats to Economic Recovery

How these events can impact Puerto Rico

Much has occurred since our last issue of March wherein we analyzed the PR economy in 2010 and forecast for 2011 through 2013. Since then, we have seen the escalating price of gasoline as oil prices and wars have escalated; the heated debate in US Congress on account of the federal budget deficit and the rapidly approaching ceiling of the trillionaire public debt of the US. And if these events were not enough, Japan, the third largest economy in the world experienced a major earthquake followed by a tsunami and the fear of radioactive fallout from some of its atomic plants. Puerto Rico is not isolated from the adverse effects of these international threats. What could potentially be the most pessimistic economic outlook for the island? How can you as a businessperson and consumer be ready? The key to your success lies in the use of this information to identify risks and opportunities.