Panorama econòmic

Economic indicators

Puerto Rico's economy is mixed and heavily reliant on manufacturing, services, and tourism. The island is a major producer of pharmaceuticals, medical devices, and chemicals, with a strong presence in the global market. The U.S. territory benefits from favourable tax incentives for businesses, but it faces challenges such as high public debt, reliance on imports, and vulnerability to natural disasters. Puerto Rico's economy grew by 2.1% in fiscal year 2024, driven by strong consumption and trade. Looking ahead, the island’s economy is expected to experience moderate growth in the next two fiscal years. According to the latest projections from the Planning Board, Puerto Rico's gross national product (GNP) is anticipated to increase by 1.1% in fiscal year 2025 and by 0.5% in fiscal year 2026.

Concerning public finances, in 2024, the general government gross debt was estimated at 17.7% of GDP by the IMF, with a slight uptick expected over the forecast horizon (18.7% by 2025). To date, Puerto Rico continues to deal with the aftermath of its debt crisis, which began in 2014 when the island's public debt surpassed USD 70 billion. The Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) was enacted in 2016, creating the Financial Oversight and Management Board (FOMB) to oversee financial restructuring. By 2022, a federal court approved a debt adjustment plan that reduced Puerto Rico's debt by 80%, bringing it down to around USD 37 billion, saving the island over USD 50 billion in debt service payments. Despite these efforts, challenges remain. In early 2024, the FOMB warned that the Puerto Rico Electric Power Authority's bonds could be worthless, as there might be insufficient funds to repay over USD 11 billion in debt. The island also continues to face issues with its energy infrastructure, including frequent power outages and a fragile grid system. The debt crisis has contributed to a population decline of more than 10% from 2010 to 2020, as many residents left for better opportunities. The monetary policy measures imposed by the United States Federal Reserve aim to increase the benchmark interest rate or cost of money to control credit and, in turn, curb inflation. According to the IMF estimates, inflation stood at 2.2% in 2024, after peaking at 6.1% in 2022. It is expected to decrease marginally to 2% in 2025.

Labour force participation remains low, with only around 40% of individuals of working age being employed.  However, the unemployment rate has reached a historic low of 5.4% in 2024 (official governmental data). Furthermore, although the number of individuals leaving the island has decreased (Puerto Rico experienced a net loss of 0.4%, or 14,422 people, in 2023 compared to a loss of 1.3%, or 42,580 people, in 2022), the birth rate has declined and the death rate has risen. Nonetheless, the population continues to decline at a slower pace. With the destruction of nearly half a million homes after Hurricane Maria and increased unemployment brought on by the pandemic, nearly half of the population still lives below the poverty line. The island has also been dealing with a wave of violence and crime, primarily linked to gang activity and drug trafficking.

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