What is Puerto Rico struggling with?
Puerto Rico’s controversial bankruptcy crisis Puerto Rico’s money problems, which have grown over the past two decades, are the result of many factors: Years of borrowing to cover budget deficits, poor economic growth, political corruption and a population decline all play a role.
Who holds Puerto Rico’s debt?
and the Puerto Rico Government Development Bank. Still pending are the restructuring of debts owed by the Puerto Rico Highways and Transportation Authority and the Puerto Rico Electric Power Authority, which holds about $9 billion in debt, the largest of any public corporation.
How is Puerto Rico doing economically?
Statistics show that it has some of the most favorable economic conditions; the gross national product (GNP) is growing much more rapidly than the population, and the GNI per capita (formerly GNP per capita) is one of the highest in the Caribbean, but in comparison with the United States, Puerto Rico is still below …
What caused the debt in Puerto Rico?
Puerto Rico accumulated more than $70 billion in public debt and more than $50 billion in public pension liabilities through decades of corruption, mismanagement and excessive borrowing. The U.S. Congress created the federal board in 2016, a year after the island’s government said it was unable to pay its debt.
Is Puerto Rico still in debt?
Puerto Rico’s government is formally exiting bankruptcy after completing the largest public debt restructuring in U.S. history after announcing nearly seven years ago that it was unable to pay its more than $70 billion debt. March 15, 2022, at 8:35 a.m.
What is Puerto Rico’s debt right now?
Economic depression Puerto Rican national debt is now approximately $74 billion, but unlike mainland municipalities, Puerto Rico is not protected by Chapter 9 of the U.S. Bankruptcy Code and cannot file for bankruptcy.
How is Puerto Rico’s debt?
Puerto Rico’s public debts totaled just over $70 billion when the Puerto Rico Oversight, Management, and Economic Stability Act (P.L. 114-187; PROMESA) became law on June 30, 2016. Most of those debts are now in the midst of perhaps the largest restructuring of public debt in U.S. history.
What is the Jones Act in Puerto Rico?
On March 2, 1917, President Woodrow Wilson signed the Jones-Shafroth Act. This law gave Puerto Ricans U.S. citizenship. The Jones Act separated the Executive, Judicial, and Legislative branches of Puerto Rican government, provided civil rights to the individual, and created a locally elected bicameral legislature.
Is Puerto Rico economy growing?
Gross Domestic Product for Puerto Rico, 2019 Real gross domestic product (GDP) increased 0.3 percent in 2019 after decreasing 2.4 percent in 2018, according to estimates released today by the Bureau of Economic Analysis (BEA). The statistics released today are BEA’s first official release of GDP for Puerto Rico.
What is Puerto Rico unemployment rate?
11.17%
Unemployment refers to the share of the labor force that is without work but available for and seeking employment. Puerto Rico unemployment rate for 2020 was 11.17%, a 2.87% increase from 2019. Puerto Rico unemployment rate for 2019 was 8.30%, a 0.9% decline from 2018.
What is the #1 industry in Puerto Rico?
Service. The service industry is Puerto Rico’s fastest-growing industry, and it has most recently overtaken manufacturing as Puerto Rico’s primary industry in terms of GDP production. The three branches of Puerto Rico’s service industry, described in further detail below, are finance and real estate, trade, and tourism …
How is the job market in Puerto Rico?
Employment Rate in Puerto Rico averaged 38.85 percent from 1990 until 2021, reaching an all time high of 44.70 percent in March of 2006 and a record low of 33.40 percent in September of 2014.
What is the unemployment rate in Puerto Rico 2021?
Puerto Rico
| Data Series | Dec 2021 | Jan 2022 |
|---|---|---|
| Unemployment Rate(2) | (r)7.5 | 7.1 |
| Nonfarm Wage and Salary Employment | ||
| Total Nonfarm(3) | 891.7 | 900.2 |
| 12-month % change | 5.2 | 5.4 |
How did the 2008 financial crisis affect Puerto Rico?
The 2008 global financial crisis hit Puerto Rico especially hard, with the recession further lowering tax revenues, souring an early-2000s construction boom, and giving investors pause. The territorial government implemented austerity measures, including layoffs of public workers, that sent unemployment soaring.
Is Puerto Rico’s economy failing?
Puerto Rico continues to be ravaged by a sustained recession. Annual economic growth fell by roughly 12.5 percent overall between 2004 and 2020, while Puerto Rico’s population shrunk by more than 16 percent.
Is Puerto Rico’s Crisis a perpetual crisis?
In April 2021, Biden freed up nearly $8 billion in disaster-relief funding for Puerto Rico, and in July, his administration revived the White House Puerto Rico task force to better coordinate federal policy toward the island. In Foreign Affairs, Antonio Weiss and former CFR Senior Fellow Brad W. Setser explain Puerto Rico’s “perpetual crisis.”
Is there a solution for Puerto Rico’s debt crisis?
Absent a solution, migration to the U.S. mainland could continue to surge. At the same time, however, a recent deal to restructure nearly 80 percent of Puerto Rico’s public debt could serve as a template for debt-saddled U.S. states. What is Puerto Rico’s historical backdrop?