The Most Developed Economy in the Region


Puerto Rico enjoys a highly diversified economy and has become a formidable player in high-value added manufacturing industries which include pharmaceuticals, electronics, processed foods, clothing, and textiles. The service sector is playing an increasingly pivotal role in Puerto Rico’s economic development contributing significantly to job creation and growth, particularly in educational and health services, professional and business services, financial and insurance services, among others.

Below are a series of the principal economic indicators of Puerto Rico’s economy: 

I. Growth
  • The year-over-year change of the Economic Activity Index of the Government Development Bank (EAI-GDB) on October 2011 was -0.9%, the most favorable change since July 2007 (52 months)
  • In fiscal year (FY) starting on July 2011 (FY 2012), for the first time in 6 years the economy of Puerto Rico will be experimenting positive economic growth
  • In FY 2010 the Gross Domestic Product (GDP) reached $96.3 billion, more than $25,000 on a per capita basis

II. Competitiveness
  • Puerto Rico scaled up 6 notches to the 35th position out of 142 jurisdictions evaluated in the 2011-2012 edition of the World Economic Forum’s (WEF) Global Competitiveness Report. Puerto Rico was the jurisdiction that showed the most improvement among the top 35 economies in the world. This is the highest ranking Puerto Rico has obtained in this report in its history
  • Puerto Rico scaled up 2 notches to the 43rd position out of 138 jurisdictions in the 2010-2011 edition of the Global Information Technology Report published by the WEF
  • Puerto Rico scaled up 8 notches to the 45th position out of 139 jurisdictions in the Travel and Tourism Competitiveness Report published by the WEF, the highest ranking Puerto Rico has obtained in this report in its history

III. Jobs


        A. Total Nonfarm Payroll Employment:

  • Total nonfarm payroll employment in November 2011 increased by 3,600 jobs in comparison to November 2010. This represents a year-over-year increase of 0.4%, the highest year-over-year increase since March 2006 (67 months)
  • Two of the last three months have exhibited year-over-year increases in the total nonfarm payroll employment
        B. Unemployment Rate:
  • The unemployment rate in November 2011 reached 15.2%, representing a decline of 1.1 percentage points when compared to October 2011 and a decline of 0.2 percentage points when compared to November 2010
  • The unemployment rate has been declining on a year-over-year basis in six out of the last eight months, trend that has not been seen since the end of 2006 (57 months)
        C. Total Employment in the Private Sector:
  • Total employment in the private sector in June 2011 increased by 12,000 jobs in comparison to June 2010, representing a year-over-year increase of 1.4%, the highest year-over-year increase in this indicator since January 2007 (53 months) 
  • Three of the last six months have shown year-over-year increases in total employment in the private sector

IV. Government Revenue
s

        A. Sales and Use Tax Revenues (IVU by its Spanish acronym):
  • In the first four months of FY 2012 (July to October) sales and use tax revenues totaled $369 million, showing a 3.4% increase on a year-over-year basis
  • In FY 2011, sales and use tax revenues totaled $1.1 billion, showing an increase of 2.7% when compared to FY 2010
  • January 2011 was the month with the highest sales and use tax revenues for any given month in Puerto Rico’s history
        B. General Fund Net Revenues:
  • In the first four months of FY 2012 (July to October), general fund net revenues showed an 8.0% increase on a year-over-year basis
  • In FY 2011, the general fund net revenues totaled $8.2 billion, representing an annual increase of 6.2%. This was the first time that general fund net revenues showed positive growth since FY 2007
  • General fund net revenues in the month of April 2011 were the highest in Puerto Rico’s history

V. Commerce


        A. Retail Sales:
  • In the first ten months of calendar year (CY) 2011 (January to October) retail sales totaled $28.8 billion, representing a 2.7% increase when compared to the first ten months of CY 2010
  • Retail sales will increase by 3.3% on a year-over-year basis during the Christmas season, according to government projections
        B. Auto Sales:
  • In the first nine months of CY 2011 (January to September) auto sales totaled 63,124 units, representing a 1.5% increase when compared to auto sales during the first nine months of CY 2010
  • In CY 2010 auto sales totaled 89,745, representing an increase of 17.3% when compared to CY 2009
 
VI. Bankruptcy Filings
  • In November 2011 bankruptcy filings decreased by 19.2% on a year-over-year basis
  • We have seen eight consecutive months of year-over-year decreases in bankruptcy filings
  • From January 2011 to November 2011 we have seen an 8.6% decline in bankruptcy filings on a year-over-year basis

VII. Housing and Construction


        A. Home Sales:
  • From November 2010 to November 2011 home sales amounted to 15,550 new and existing units (11,995 existing units and 3,555 new units), representing an increase of 32.8%, while during the same time period in the rest of the U.S. there was a decrease of 13%
  • The total value of home sales from November 2010 to November 2011 totaled approximately $2.5 billion
        B. Cement Sales:
  • In November 2011 cement sales totaled 1.63 million bags (94 lbs.), representing a 7.5% year-over-year increase, the third consecutive month of year-over-year increase in cement sales
  • In the first eleven months of CY 2011 (January to November) cement sales increased by 4.4% when compared with the first eleven months of CY 2010 
 
VIII. Manufacturing and External Trade


        A. Puerto Rico Manufacturing – Purchasing Managers Index (PRM-PMI):
  • The Puerto Rico Manufacturing - Purchasing Managers Index (PRM-PMI) has been at or above the expansion threshold of 50 in thirteen of the last eighteen months, reflecting a manufacturing sector in an expansionary phase
        B. Exports:
  • In FY 2011 exports totaled $64.9 billion, representing an annual growth of 5.2%
  • Exports of $64.9 billion represent the highest value for any given fiscal year during Puerto Rico’s history
        C. Imports:
  •  In FY 2011 imports totaled $44.7 billion, representing an annual growth of 9.5% 

IX. Tourism


        A. Hotel Occupancy Rate:
  • In the first eleven months of CY 2011 (January to November), the hotel occupancy rate reached 69.6%, an increase of 1.5 percentage points when compared to the first eleven months of CY 2010
  • In the first eleven months of CY 2011 (January to November) we have seen the highest rate of hotel occupancy since at least calendar year 2008 (when Smith Travel Research surveying began)
        B. Average Daily Rate:
  • In the first eleven months of CY 2011 (January to November) the average daily rate reached $167.57, an increase of 4.4% when compared to the first eleven months of CY 2010
  • In the first eleven months of CY 2011 (January to November) we have seen the highest average daily rate since CY 2009os

Sources:
Puerto Rico Planning Board
U.S. Census Bureau
Government Development Bank for Puerto Rico
World Economic Forum
Puerto Rico Department of Labor and Human Resources
Puerto Rico Treasury Department
Puerto Rico Trade and Export Company
Grupo Unido de Importadores de Automóviles (GUIA)
United States Bankruptcy Court for the District of Puerto Rico
Puerto Rico Housing Finance Authority
Puerto Rico Institute of Statistics
Smith Travel Research, Inc.

For more Economic Indicators on Puerto Rico, please click on the link below:
The Government Development Bank for Puerto Rico




 

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