Puerto Rico Compass ©

Q1 2009: Tracking Puerto Rico’s Economic Scorecard

Quarterly economic indices tell the story

During the first quarter of 2009, the newly elected government announced huge fiscal deficits and an urgent need to reduce public expenses. Federal and local stimulus plans were approved with the hope of restoring growth in the short run. The administration announced a reduction of 30,000 jobs starting in fiscal 2010. This measure is recessionary and will worsen unemployment, which reached 14.1% during February. How long will the recession last? This will depend on the effectiveness of the recovery plans and on what sectors investment flows while at the same time, consumers recover confidence on the island’s economic future. How the US economy performs, as well as local sectors, such as, construction and banking are the clue to finally register positive growth.