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.The economy of Puerto Rico is classified as a by the and as the most competitive economy in by the. The main drivers of 's economy are, primarily, textiles, petrochemicals, and electronics; followed by the service industry, notably, insurance,. The and are both determining factors on its economic prosperity, primarily due to its relatively small size as an island; used to produce, and, consequently, its dependence on imports; as well as its relationship with the United States which controls its while exerting trading restrictions, particularly in.At the macroeconomic level Puerto Rico has been experiencing an for 14 consecutive years, starting in 2006 after and the expiration of the section 936 that applied to Puerto Rico of the. This section was critical for the economy of the island as it established for U.S. Corporations that settled in Puerto Rico and allowed its subsidiaries operating in the island to send their earnings to the parent corporation at any time, without paying federal tax on corporate income. Puerto Rico has, however, surprisingly been able to maintain a relatively low inflation in the past decade. Academically, most of Puerto Rico's economic woes stem from federal regulations that expired, have been repealed, or no longer apply to Puerto Rico; from its inability to become self-sufficient and self-sustainable throughout history; from its highly politicized public policy which tends to change; as well as from which has accrued a equal to 66% of its over time, though despite these issues, the economy continues to gradually strive.In comparison to, Puerto Rico is poorer than the poorest state of the United States, with 45% of its population living below the.
However, when compared to Latin America, Puerto Rico has the highest GDP per capita in the region, as well as being the most competitive economy among, surpassing. The Commonwealth has a massive bond debt that it is unable to service, $70 billion in early 2017, or $12,000 per capitaat a moment when its unemployment rate (8.0%, October 2018) is more than twice as large as the mainland's. The debt had been increasing during a decade long recession. It is essential for Puerto Rico to reach restructuring deals with creditors to avoid a bankruptcy-like process under. More specifically, Puerto Rico has been in an unusual situation since 2016: its economy is under the supervision of a federal board that is managing finances and helping to get access again to capital markets.The has a modern infrastructure, a large public sector, and an institutional framework guided by the regulations of, most of which have an active and continued presence in the island. Its main trading partners are the itself, and, with most products coming from, mainly from,. In 2016, additional trading partners were established, with, and commencing import trades with Puerto Rico.
At a global scale, Puerto Rico's dependency on oil for and, as well as its dependency on food imports and raw materials, makes Puerto Rico volatile and highly reactive to changes in. This section may lack focus or may be about more than one topic. Please help improve this article, possibly by the article and/or by introducing a, or discuss this issue on the. ( November 2012)In the early 20th century the greatest contributor to Puerto Rico's economy was agriculture and its main crop was sugar, displacing other cash crops such as tobacco and coffee. In 1935, launched the Puerto Rican Reconstruction Administration, which provided agricultural development, public works, and electrification of the island.Economic conditions have improved dramatically since the because of external investment in capital-intensive industries such as,. Starting in the late 1940s a series of projects called encouraged, using tax exemptions, the establishment of factories. Thus manufacturing replaced agriculture as the main industry of the island.
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Operation Bootstrap was based on an 'industrialization-first' campaign and modernization, focusing the Puerto Rican economy on exports, especially to the United States. As a result, Puerto Rico is now classified as a 'high income country' by the. Although initially there were large gains in employment and per capita income, recessions in the United States were magnified in the country and have repeatedly hampered Puerto Rican development.With the signing of the and the, Puerto Rico lost a trade advantage over some Latin American countries as the right to duty-free imports to the U.S. Market were expanded. Following the, Puerto Rico is also subject to the laws of the United States, which gives lower-wage countries such as and the an economic advantage in the Caribbean. Once the beneficiary of special tax treatment from the U.S. Government, today local industries must compete with those in more economically depressed parts of the world where wages are not subject to U.S.
Minimum wage legislation. In recent years, some U.S. And foreign owned factories have moved to lower wage countries in Latin America and Asia. Puerto Rico is subject to U.S. Trade laws and restrictions.Also, starting around 1950, there was heavy migration from Puerto Rico to the, particularly, in search of better economic conditions. Displayed an average yearly migration of 1,800 for the years 1930–1940, 31,000 for 1946–1950, 45,000 for 1951–1960, and a peak of 75,000 in 1953. As of 2003, the estimates that more people of Puerto Rican birth or ancestry live in the U.S.
Than in Puerto Rico. Puerto Rico's month-over-month Economic Activity Index for FY2013 evidences its sluggishness and decline.By mid January 2017, the debt had reached $70 billion or $12,000 per capita in a territory with a 45 percent poverty rate and double digit unemployment that is more than twice the mainland U.S. It is essential for Puerto Rico to reach restructuring deals with creditors to avoid a bankruptcy-like process under. In late January, the federal control board gave the until February 28 to present a fiscal plan (including negotiations with creditors) to solve the problems.
A moratorium on lawsuits by debtors was extended to May 31.Governor is strongly in favor of statehood for Puerto Rico, particularly because of financial benefits that would offer. These include an additional $10 billion per year in federal funds, the right to vote in presidential elections, higher Social Security and Medicare benefits, and a right for its government agencies and municipalities to file for bankruptcy. The latter is currently prohibited.
A is due to be held on June 11, 2017. The two options at that time will be 'Statehood' and 'Independence/Free Association'.
It will be the first referendum not to offer the choice of 'Commonwealth'. Regardless of the outcome, Congress will be the body to make the final decision on the status of Puerto Rico.A review of the economic situation in May 2017 by the Official Monetary and Financial Institutions Forum, an independent think tank, led to a warning that the planned 'draconian budget-tightening' will cut up to 6% of the island's GNP over the next four years, leading to continuing decline. 'Puerto Rico urgently needs an International Monetary Fund-style programme involving debt relief in return for a commitment to far-reaching reforms. That will facilitate growth,' the group concluded. Main article:Agriculture constitutes about $808 million US$ or about 0.8% of the island's (GDP). However, Puerto Rico imports 85% of its food even though most of the land is fertile.
Only a mere 6% is arable; a fact that poses a direct threat to Puerto Rico's. This perplexing situation has been caused due to a shift in priorities towards industrialization, bureaucratization, mismanagement of terrains, lack of alternative methods, and a deficient agricultural workforce. Puerto Rico's geographical location within the Caribbean exacerbates these issues, making the scarce existing crops vulnerable to the devastating effects of.The following fruits are industrially cultivated and widely consumed.
Cows in Arecibo, Puerto Ricoused for food includes, and., and are strictly used for labor or recreation as consumption is frowned upon culturally by locals. Cattle is used for both meat and with a strong and self-sufficient local through processors such as. The is one of the only two industries experiencing consistent significant growth on the island with, and being quintessential in homes. Consumption of animals commonly used as pets is frowned upon culturally save for rabbits.Mining There are some metal deposits of, and on the island but they are not large enough to sustain a profitable mining industry. Mismanagement of terrains and poor urban planning has made it difficult for the mining industry to thrive as well, as many deposits are directly below or nearby residential complexes. Puerto Rico also possesses industries of,.
The cement industry is tracked meticulously as it has shown to be highly correlated to the GDP of the island. Secondary sector. Main article:Manufacturing is the largest of the island; composing almost half (about 46%) of its (GDP) through more than 2,000 manufacturing plants scattered throughout the island. All manufacturers in Puerto Rico are in some way interconnected with the (PRIDCO) which provides substantial incentives for companies that manufacture in Puerto Rico. Manufacturers are also voluntarily interconnected through the which serves as their primary and their main upon the.
Most manufacturing in Puerto Rico today is the product of. In terms of specialization, more than half of all manufacturing done in Puerto Rico is attributed to the pharmaceutical industry which generates more than 18,000 jobs, pays more than US$3 billion in taxes, comprise about half of total exports, and has generated more than 25% of the island's GDP for the past four decades. Comparatively, Puerto Rico is the fifth largest area in the world for pharmaceutical manufacturing with more than 80 plants, including. BD.
(gsk).Puerto Rico is also the third-largest biotechnology manufacturer with more than two million square feet and the seventh-largest medical-device exporter with more than 50 plants. Pharmaceutical companies originally came to Puerto Rico in the late 1960s and 1970s to take advantage of the now-expired federal tax incentive known as Section 936.
This incentive allowed U.S.-based manufacturers to send all profits from local plants to stateside parent plants without having to pay any federal taxes. However, expired patents, cheaper manufacturers (such as those in Brazil, China, India, and South Korea), the rise of, and high production costs pose a challenge to the industry. As of 2014, Puerto Rico produces 16 of the top 20-selling drugs in the mainland United States.The aeronautical industry is relatively young on the island and concentrates mostly on the northwestern corridor composed. These municipalities serve as local headquarters for, and., and also have presence on the island although their local operations do not focus on aeronautics but rather focus on business support.Education in aeronautics is provided by the and the. The (UPRM), the (PUPR), and the graduate most of the engineers on the island.Tertiary sector Finance The is of great prominence, accounting for 5.75% of Puerto Rico's (GNP) in 2010.
Similar to any other state of the union, Puerto Rico's financial sector is also fully integrated into the U.S. Financial system.
Federal regulations govern the sector, being a constituent part of the jurisdiction of the, responsible for implementing monetary policy enacted by members of the in Washington, D.C. Throughout the United States.Real estate. St Regis Bahia Beach Resort in Puerto Rico view of El YunqueTourism is an important component of the Puerto Rican economy supplying an approximate US$1.8 billion per year. In 1999, an estimated five million tourists visited the island, most from the United States.
Nearly a third of these were passengers. An increase in hotel registrations, which has been observed since 1998, and the construction of new hotels and the are indicators of the current strength of the tourism industry. In 2009, tourism accounted for nearly 7% of the islands' gross national product.The following includes some public and private projects aimed at increasing the tourism industry in Puerto Rico., closed since Hurricane Maria (September, 2017).Trade As an unincorporated territory of the United States, travel and trade between Puerto Rico and the U.S.
Mainland or other U.S. Territory are not subject to international border controls. However, all goods moving from Puerto Rico to the U.S. Mainland are subject to agriculture inspection controls by the (USDA).
Travelers and goods move without restriction between Puerto Rico and other U.S. Territories such as U.S. Virgin Islands. Travel and trade between Puerto Rico and territory outside U.S.
Jurisdiction are subject to international border controls.Mail bound for the mainland from Puerto Rico and Hawaii is subject to USDA inspection for quarantined plant matter.Puerto Rico may collect import duties only to the same degree it taxes the same goods produced domestically.Puerto Rico receives, which generated approximately $371 million in 2008. Main article:Preschool education, care, and services (including and ) are free for low income families with private being common and within walking distance in urban areas. Primary and secondary education is and free regardless of income through more than 1,400 public schools.
Only ten public schools are considered prestigious locally, all of them being, which graduate the highest scores on the island of the (Latin America's equivalent of the ). Two examples of these are and which focus on science, technology, and mathematics. There are more than 700 on the island, most of them. It is constitutionally illegal to deny entrance or take action against students that profess a difference faith than the school they attend or intend to attend. Students from differing denominations are legally freed from attending religious activities on the schools they attend. Prominent private schools include, and which maintain a high rate of students being accepted into prominent universities in the United States.There is a plethora of, the most prominent being the, the, the, and the (NUC). There is only one state-run system, the, which possesses several prestigious programs at the local level and whose costs are significantly below market prices.
Thanks to this abundance of junior colleges—and the presence of other institutions of higher education— the percentage of Puerto Ricans with bachelor's degrees, at 18.3% according to the 2000 Census, is roughly comparable to the lower tier of American states.Not a single ranks in the top 700 global rankings, with only the, the (UPR), appearing on the ranks. Several schools and programs appear on different rankings but not a single one of these is considered a prestigious ranking system neither nationally nor internationally. The three major university systems on the island are the itself with 11 campuses, the (SUAGM) with 3 major campuses and some satellites, and the (Inter) with 9 campuses and 2 specialized schools.The prestige and eliteness of the University of Puerto Rico within the Caribbean and Puerto Rico is unparalleled:. Main article:The healthcare system in Puerto Rico is quite robust and advanced. The system meets the regulations of the which has jurisdiction over the island, and the local. Medical offices within walking distance are common in urban areas as well as,.
There are specialized hospitals for cardiovascular diseases, cancer treatment, children (pediatrics), psychiatric care, and veterans. Main articles: andLocal security is overseen by the and the which has jurisdiction over the island. Law enforcement is carried out by the, the local which has many stations scattered throughout all municipalities. Municipal laws are enforced by each respective. Is a mix of the and the systems.
Disputes under local jurisdiction are carried out by a system of municipal courts, and with the highest and the being the.apply in Puerto Rico as the island is. Issues that trespass into federal jurisdiction are managed by the (FBI), the (DEA), the (ATF), the (USMS), the (DOJ),. Disputes that trespass the local jurisdiction are managed by the with the being the first in line.Fire protection, rescue, and protection from hazards is provided by the which has at least one fire station in each municipality on the island.
A separate agency, the, provides emergency medical services to all Puerto Rico. The island is also part of the system. All local emergencies and disasters are managed and overseen by the (AEMEAD) which works closely and directly with the (FEMA). Puerto Rico also has a local station which provides forecasts and public warnings, as well as a local which tracks seismic activity and provides public warnings.The local is the which has a branch for ground forces, the, and another for aerial warfare, the.
The is the under the sole jurisdiction of the. Both the Puerto Rico National Guard and the Puerto Rico State Guard are considered two of the most active and well-prepared local forces in the nation. Have been bestowed with the, the highest military decoration of the United States, with Puerto Ricans having served in every U.S. Military conflict since, including the and the.Key posts include the, the, the, and the.Telecommunications. Main article:Telecommunications meet the regulations of the (FCC) which has jurisdiction over the island, and the local (JRT in Spanish). Broadcasts are transmitted through and, as well as the Internet. And the are two of the most prominent radio operators on the island., and transmit television from the island through, and respectively.Several offer (Internet + television + telephony) on the island with, and being the most prominent.
Most downtime is caused by power failures in the electric grid rather than in telecommunications networks with outages being rare and fixed within hours. High speed internet access and mobile telephony is ubiquitous with providers such as, and being the most prominent. Chains like, and provide free WiFi at their numerous locals.landing in Puerto Rico include, and.Transportation.
Main articles:, andTaxation is highly complex due to a lack of uniformity in and a disparate amount of incentives, subsidies, tax exemptions, tax breaks, and tax deductions. For example, an ordinary retail sale might have to pay: import taxes, sales taxes, property taxes, corporate net income taxes, national taxes, excise taxes, and sin taxes depending on the item being sold. Regardless of all this, American citizens that reside in Puerto Rico do not pay federal income taxes unless they work for the federal government, do business with the federal government, or send funds to the United States. This peculiarity has been taken as an advantage by the local government which now offers a plethora of tax exemptions and tax benefits for that relocate to the island. These benefits have been ratified into law through,. Thanks to these acts, business owners residing on the island might be completely exempt from paying any local and federal taxes at all, depending on their line of business.On November 15, 2006, the government implemented a 5.5% sales tax. Comparatives Business sizes More than 99% of all businesses in Puerto Rico are considered (less than 250 employees) with more than 74% being (less than 10 employees).
However, in terms of payroll, small businesses constitute about 61% of all payroll on the island with about 13% of all payroll coming from medium businesses (between 250–499 employees) and about 25% coming from large enterprises (more than 500 employees). Business sizes and payroll in Puerto Rico Number of employeesNumber of businessesAnnual payroll(in thousands)1–525,084$941,9245–99,092$1,112,32810–195,756$1,430,29120–493,955$2,350,06550–991,318$1,948,338$2,595,652$2,263,810$1,974,6411,000+43$2,352,945Total46,348$16,969,984Only 7.5% of the corporations registered in the Department of State of Puerto Rico—or about 6,000 out of 80,000—exceed $3M in revenue. Of these 6,000, a mere six compose more than 30% of all of Puerto Rico's corporate income tax collections; all six being multinationals.Cost of living The cost of living in Puerto Rico, specifically San Juan, is quite high compared to most major cities in the United States. One factor is housing prices which are comparable to and, although property taxes are considerably lower than most places in the United States. Statistics used for cost of living sometimes do not take into account certain costs, such as increased travel costs for longer flights, additional shipping fees, and the loss of promotional participation opportunities for customers 'outside the continental United States'. While some online stores do offer free shipping on orders to Puerto Rico, many merchants exclude Hawaii, Alaska, Puerto Rico and other United States territories.The median home value in Puerto Rico ranges from US$100,000 to US$214,000, while the national median home value sits at $119,600.
Ease of doing business Puerto Rico is considered the 40th economy out of 189 in rank of by the; surpassed only by Chile in Latin America. It ranks very poorly in construction permits but very well in getting credit and protecting investors. This section may need to be rewritten to comply with Wikipedia's. The may contain suggestions.
( December 2015)Puerto Ricans had of $18,314 for 2009, which makes Puerto Rico's economy comparable to the independent nations of or Poland. By comparison, the poorest state of the Union, had median household income of $36,646 in 2009. Nevertheless, Puerto Rico's GDP per capita compares favorably to other independent Caribbean nations, and is one of the highest in North America. SeePuerto Rico has a GDP per capita of $16,300 (2010 est.). Compared to the rest of the world they are ranked 73rd. Puerto Rico's GDP per capita has been declining in recent years ($18,100 (2008 est.), and $17,400 (2009 est.)). According to statistics from the Central Intelligence Agency (CIA), its is the 10th highest in the Caribbean, behind the Bahamas ($30,400), Aruba ($25,300) Barbados ($25,000), Trinidad and Tobago ($20,000), Antigua & Barbuda ($17,800) and British dependencies Cayman Islands ($43,800), British Virgin Islands ($42,300) and Turks & Caicos ($29,100).In terms of personal income, federal to Puerto Rico make up.
By comparison, the poorest state, Mississippi, had a median level of $21,587, according to the Bureau's Current Population Survey, 2002 to 2004 Annual Social and Economic Supplements. Since 1952, the gap between Puerto Rico's per capita income and the national level has changed substantially – from one third the U.S.
National average and roughly half that of the poorest state in 1952, to 10% less than the poorest state in 2007.In 2010 the median income in Puerto Rico was $19,370, which is just over half that of the poorest state (Mississippi, $37,838) and 37% of the nationwide average ($51,144). According to the of the of the United States, the mean annual salary of residents of Puerto Rico is $27,190, the lowest among U.S. Territories continuously surveyed periodically by this institution. Guam has the second lowest mean salary to $31,840, closely followed Mississippi, a state, with $34,770. This spread in mean wages could be explained by a minimum wage law for certain industries that are capped to 70% of the federal minimum wage of $7.25 per hour. Workforce Puerto Rico's most competitive advantage lies on its labor force: a highly competitive, educated, and skilled labor force that enjoys. This allows U.S.-based companies to relocate some of its operations to the island for cheaper labor costs while still maintaining a labor force subject to the rights and benefits given by American citizenship and federal regulations.
Educated workers tend to be bilingual as well while costing 30–35% less than a worker in the mainland. Puerto Rico's labor force by sector SectorNumber of persons(in thousands)PercentageGovernment244.426%Trade, Transportation, and Utilities178.619%Education & Health Services123.313%Professional & Business Services118.013%Leisure & Hospitability80.09%Manufacturing76.08%Finance43.45%Mining, Logging, and Construction29.53%Information18.72%Other Services17.82%Total929.7100.0%Challenges Costs of doing business. Map of carrier routes for Puerto Rico.One of the most significant contributors to the high cost of living in Puerto Rico is the (also known as the ) which prevents foreign-flagged ships from carrying cargo between two American ports (a practice known as ). Because of the Jones Act, foreign ships inbound with goods from and, and cannot stop in Puerto Rico, offload Puerto Rico-bound goods, load mainland-bound Puerto Rico-manufactured goods, and continue to U.S. Instead, they must proceed directly to U.S.
Ports, where distributors and send Puerto Rico-bound manufactured goods to Puerto Rico across the ocean by U.S.-flagged ships.Puerto Rican consumers ultimately bear the expense of transporting goods again across the Atlantic and Caribbean Sea on U.S.-flagged ships subject to the extremely high operating costs imposed by the Jones Act. This also makes Puerto Rico less competitive with Caribbean ports as a shopping destination for tourists from home countries with much higher taxes (like mainland states) even though prices for non-American manufactured goods in theory should be cheaper since Puerto Rico is much closer to, Western Europe, and Africa.The has requested several times to the to exclude Puerto Rico from the Jones Act restrictions without success. The most recent measure has been taken by the through R. These measures have always received support from all the. In 2013 the published a report which concluded that 'repealing or amending the Jones Act cabotage law might cut Puerto Rico shipping costs' and that 'shippers believed that opening the trade to non-U.S.-flag competition could lower costs.' The report, however, concluded that the effects of modifying the application of the Jones Act for Puerto Rico are highly uncertain for both Puerto Rico and the United States, particularly for the and the military preparedness of the United States.The costs of doing business in Puerto Rico are further increased by complex labor laws that force employers to pay for several from their own pockets. Puerto Rico also lacks which puts significant restraints on employers when they want to dismiss an employee.Residents of Puerto Rico are also subject to a highly complex tax system with many different exemptions and disparities between taxes.
Inefficient government The political class has proven to be highly stubborn when examining existent public policies. This stubbornness ultimately forced Puerto Rico to incur in higher. For example, even though the island's geography features many rivers, the government has opted to leave the behind. Public policy has also opted not to pursue either. Instead, even though Puerto Rico does not have any oil-based resources, it has opted to power its electric plants with fossil fuels: less than 3% of all energy is produced through even though Puerto Rico enjoys more than 65% sunny hours per day in average and 19-knot (22 mph; 35 km/h) winds year round. This forces, the and that owns and manages all and, to spend 58% of its operational expenses in fuel purchases alone.In terms of food production, Puerto Rico imports 85% of its food even though most of the land is fertile with only a mere 6% being arable.
The same occurs in primary education and secondary education: Puerto Rico spends almost $4 billion per year in even though 40% of all the students that enter in public schools in Puerto Rico and never finish secondary education. In addition, ninety-five percent (95%) of public school students in Puerto Rico graduate at a sub-basic level while sixty percent (60%) do not even graduate. Furthermore, according to the, thirty-nine percent (39%) of public school students perform at a basic level (average performance) in Spanish in the. Likewise, 36% perform at a basic level in while 35% perform at a basic level in and 43% at a basic level in in the relevant tests. Overall, 1,321 out of 1,466 public schools in Puerto Rico (about 90%) do not comply with the academic progress requirements established by the.The local government has also proven to be highly inefficient in terms of management and planning; with some newspapers, such as, stating that the main problem is inefficiency rather than lack of funds.
As an example, the is incapable of collecting 44% of the (or about US$900 million), did not match what taxpayers reported to the department with the income reported by the taxpayer's employer through 's, and did not collect payments owned to the department by taxpayers that submitted tax returns without their corresponding payments. The Treasury department also tends to publish its late, sometimes 15 months after a fiscal year ends, while the government as a whole constantly fails to comply with its continuing disclosure obligations on a timely basis. Furthermore, the government's accounting, payroll and fiscal oversight information systems and processes also have deficiencies that significantly affect its ability to forecast expenditures.Similarly, salaries for government employees tend to be quite disparate when compared to the private sector and other positions within the government itself. For example, a public teacher's base salary starts at $24,000 while a legislative advisor starts at $74,000. The government has also been unable to set up a system based on, with many employees, particularly executives and administrators, simply lacking the competencies required to perform their jobs.There was a similar situation at the municipal level with 36 out of experiencing a, putting 46% of the municipalities in financial stress. Just like the central government, the municipalities would issue debt through the to stabilize its finances rather than make adjustments.
In total, the combined debt carried by the municipalities of Puerto Rico account for US$3.8 billion or about 5.5% of Puerto Rico's outstanding debt. Population decline.
Main article:From 2000 to 2010, the population of Puerto Rico decreased, the first such decrease in census history for Puerto Rico; it went from 3,808,610 residents registered in 2000 to 3,725,789 in 2010 (a −2.2% decrease); it peaked at 3.91 million in 2005. A declining and aging population presents additional problems for any society as its labor force decreases and, consequently, so does its economic output. Two years later, another estimate noted that the population of Puerto Rico decreased further to 3,667,084 residents from April 1, 2010 to July 1, 2012; a −1.6% decrease.is also major part of Puerto Rico's declining population. Starting soon after, poverty, cheap airfare, and promotion by the local government caused. This trend continued even as Puerto Rico's economy improved and its birth rate declined.
In recent years, the population has declined markedly, falling nearly 1% in 2012 and an additional 1% (36,000 people) in 2013 due to a falling birthrate and emigration.The US Census Bureau's estimate for July 1, 2016 was 3,411,307 people, down substantially from the 2010 data which had indicated 3,725,789 people. As fewer people reside in Puerto Rico, the government collects less revenue from its residents. As revenues were declining in the past, the government opted to issue more outstanding debt (such as bonds) to maintain its operations rather than making adjustments. Hence, it's clear that the declining - and aging - population continues to present problems for the Commonwealth.to the United States. This section needs expansion.
You can help. ( December 2015)Unemployment is a significant issue in Puerto Rico with the unemployment rate being as high as 11.7% in 2006. By November 2009, it stood at 12% and had increased to 15.7% by October 2010. Currently the unemployment rate is at 13.7%The U.S.
State with the highest unemployment in October 2007 was Michigan, at 7.7%,and the U.S. Average was 4.4%.In mid January 2017, unemployment remained in the double digits and the poverty rate was at 45 percent. By that time, the Commonwealth's debt had increased to$70 billion or $12,000 per capita. The debt had been increasing during a decade long recession. It is essential for Puerto Rico to reach restructuring deals to avoid a bankruptcy-like process under.