Writing demands we have clarity as the words stay forever. Much of the time, such as this series of posts, this venue is also our digital diary to look back on later (maybe at a time that is more frenzied) for clarity on how to proceed or react in calmer times.
Meet Puerto Rico
While we have never been to Puerto Rico, we have many friends that are from there and visit frequently. We hope to visit in person some time.
Here are a few facts from the CIA World Fact Book:
Economy – overview:
Puerto Rico has one of the most dynamic economies in the Caribbean region, however, growth has been negative for the past four years, and unemployment rose to nearly 16% in 2011. The industrial sector has surpassed agriculture as the primary locus of economic activity and income. Mainland US firms have invested heavily in Puerto Rico since the 1950s. US minimum wage laws apply. Sugar production has lost out to dairy production and other livestock products as the main source of income in the agricultural sector. Tourism has traditionally been an important source of income with estimated arrivals of more than 3.6 million tourists in 2008. Closing the budget deficit while restoring economic growth and employment remain the central concerns of the government.
GDP (official exchange rate):
$93.52 billion (2010 est.)
GDP – real growth rate:
-5.8% (2010 est.) -3.7% (2009 est.) -2.8% (2008 est.)
16% (2011 est.)
revenues: $6.7 billion Versus expenditures: $9.6 billion (FY99/00 est.)
Debt – external:
$56.82 billion (31 December 2010 est.) $52.98 billion (31 December 2009 est.)
Exchange rates: the US dollar is used
SO, THIS IS A LOT of information, but we wanted to call your attention to GDP growth rate, Budget, and debt. Next week we review an unusual large amount of municipal bonds the lovely Puerto Rico has floated over the years.
Have a Great Wednesday!
John Kvale CFA, CFP8222 Douglas Ave # 590 Dallas, TX 75225 http://www.jkfinancialinc.com http://www.street-cents.com