Q4 2008: Every Sector Takes a Beating

Puerto Rico is in its third year of an economic recession. The current economic crisis is worldwide with a financial crisis that has not been resolved. As the mortgage market failed and many financial systems were rescued by government intervention, consumers and investors were less willing to spend and invest. Our consumer has also turned more cautious and thrifty. Gasoline and electricity bills have taken a big bite out of household budgets. Consumption is restricted and credit constraints are tightened. All economic sectors in PR, including banking, manufacturing, and construction have taken a beating and are struggling to charge ahead. As 2008 ended, a new governor was elected and together with a new team, Puerto Ricans hope to resolve the fiscal crisis and avert more unemployment.