Population Lost: Puerto Rico's Troubling Out-Migration
For the first time in modern history, Puerto Rico is seeing its population decline. This troubling loss can be traced to an exodus of Puerto Rican citizens to the U.S. mainland, a current that has picked up considerably in recent years as Puerto Rico's economy has deteriorated. Today, fully a third of those born in Puerto Rico now reside on the U.S. mainland. In this post, we examine the recent surge in out-migration that is driving Puerto Rico's population decline (which we delve into in more detail in a recent article in the New York Fed's Current Issues in Economics and Finance series), ...
Some Options for Addressing Puerto Rico’s Fiscal Problems
Puerto Rico’s economic and fiscal challenges have been an important focus of work done here at the New York Fed, resulting in two reports (2012 and 2014), several blog posts and one paper in our Current Issues series in just the last few years. As the Commonwealth’s problems have deepened, the Obama administration and Congress have begun discussing potential approaches to addressing them. In this post, we update our previous estimates of Puerto Rico’s outstanding debt and discuss the effect that various forms of bankruptcy protection might have on the Commonwealth.
Opening Remarks at the Puerto Rico and U.S. Virgin Islands Philanthropic Efforts Information Session, Federal Reserve Bank of New York, New York City
Remarks at the Puerto Rico and U.S. Virgin Islands Philanthropic Efforts Information Session, Federal Reserve Bank of New York, New York City.
Beginning to Gauge Maria’s Effect on Puerto Rico’s Economy
Just two weeks after most of Puerto Rico dodged the proverbial bullet, missing the brunt of Hurricane Irma, the island was devastated by Maria?one of the ten strongest Atlantic hurricanes on record. Making landfall on September 20, 2017, the storm caused not only massive physical destruction and tragic loss of life but also widespread and persistent power outages, shortages of potable (and even nonpotable) running water, and disruptions to telecommunications and travel, among other issues. With the storm boosting costs and disrupting activity, the short-term economic impact is clearly ...
The regional economic outlook
Remarks by William C. Dudley, President and Chief Executive Officer, New York, New York.
Puerto Rico's Evolving Household Debts
Debt and its performance play a critical role in economic development. The enormous increase in mortgage debt that took place during the run-up to the 2007 financial crisis and the contribution of that debt to the crisis underscore the importance of household debt to financial stability and economic growth. While we regularly report on household debt at the national level and for selected states in our Quarterly Report on Household Debt and Credit, we have not reported separately on Puerto Rico. This post introduces metrics on household debt in Puerto Rico, which we plan to update regularly. ...
Just Released: Benchmark Revisions Paint a Brighter Picture of (Most of) the Regional Economy
Every March, the Bureau of Labor Statistics releases benchmark revisions of state and local payroll employment for the preceding two years. While employment data are released monthly for all 50 states and many metropolitan areas, the monthly figures are estimated based on a sample of firms. The annual revisions are based on an almost complete count of workers (now available up through mid-2014) from the records of the unemployment insurance system and re-estimated data for the remainder of the year. In this post, we briefly summarize the mixed but mostly stronger performance in the region in ...
U.S. Virgin Islands Struggle while Puerto Rico Rebounds
Two years after hurricanes Irma and Maria wreaked havoc on Puerto Rico and the U.S. Virgin Islands, the two territories’ economies have moved in very different directions. When the hurricanes struck, both were already in long economic slumps and had significant fiscal problems. As of the summer of 2019, however, Puerto Rico’s economy was showing considerable signs of improvement since the hurricanes, while the Virgin Islands’ economy remained mired in a deep slump through the end of 2018, though signs of a nascent recovery have emerged in 2019. In this post, we assess the contrasting ...
Trends and developments in the economy of Puerto Rico
A two-year-long economic downturn and a persistent income gap with the U.S. mainland contribute to an uncertain outlook for Puerto Rico. Still, the commonwealth possesses a skilled and educated workforce, a favorable business climate, and the benefits of U.S. legal and financial structures - advantages that could encourage the development of new industries and create the potential for sustained growth.
Puerto Rico's Shrinking Labor Force Participation
A key concern about Puerto Rico?s prospects is that its labor force participation rate, which is the percentage of the adult population either working or looking for work, has fallen sharply. Looking at the data shows that this decline cannot be attributed to any particular demographic segment. Instead, it is the consequence of an aging population, accelerated by a falling birth rate and outmigration of a relatively young cohort. Expected demographic trends will continue to put downward pressure on the participation rate over the medium term, creating a challenging headwind for the economy to ...