Puerto Rico Economic Pulse ©

July 1998: Next Recession to Hit Puerto Rico will come from China

The devaluation of Asian currencies has made Asian products, excluding China, more inexpensive for foreigners.  China, who has avoided devaluating the yuan, is losing some ground in the export battlefield.  The stability of China’s currency has kept the US stock market afloat and the US dollar not too costly.  This issue explores why China desperately needs to stimulate its economy and how some of its policies may affect Puerto Rico’s exports, leading us into the next recession.