Puerto Rico Economic Pulse ©

December 2007: The Hope for a Second Miracle

A historical review of the PR economy and challenges ahead

Praised as an economic miracle in Latin America, Puerto Rico’s economy has undoubtedly lost steam. The same island that pulled off an amazing transformation in just two decades, is now struggling to get back on a steady path of growth. The economic model is showing fatigue and former recipes that once fostered investment and development, seem ineffective nowadays. This issue briefly reviews the long uphill path of PR, from the dawn of industrialization to an economy burdened by debts, unemployment, and an overweight public sector. This is the story of a spectacular rise, slowdown, recession, and the hope for a second miracle.