Debt Trouble in Puerto Rico

February 13, 2014

Comments

Via the BBC: Puerto Rico’s debt cut to junk status by Fitch

Puerto Rico’s debt is 93% of the island’s gross domestic product – a ratio that is higher than that of Spain.

The island’s economy has contracted every year since 2006.

[…]

The current unemployment rate is 14.7% – twice that of the US.

While I was aware of the debt problem in Puerto Rico, this brief story struck me as to how little reporting there is in most US news on US territories. Puerto Rico has ~3.7 million US citizens, and yet is largely ignored.

5 responses to “Debt Trouble in Puerto Rico”

Ben Wolf

February 13, 2014 at 9:54 am

They need to become a state or go their own way to have any shot at improving their situation. We aren’t doing them any favors by keeping them as a territory.
Andre Kenji

February 13, 2014 at 10:23 am

Puerto Rico needs to print it´s own money.
James Pearce

February 13, 2014 at 1:20 pm

So much for my “retire to Puerto Rico” plan….
rudderpedals

February 13, 2014 at 9:44 pm

@James Pearce: There’s always the Virgin Islands.
Electroman

February 14, 2014 at 4:50 pm

@Ben Wolf: No, we’re doing them tremendous favors economically. The tax status for companies building plants in PR is insanely great, to borrow a phrase. This could continue after statehood, if that ever happens.
Independence would probably bring their economy to a crashing halt, not to mention that it is politically unpopular – i.e., the residents of PR really don’t want it, largely because they know about the economic consequences. They’ve had several votes on this through the last several decades, most recently in 2012 – and the “independence” option was chosen by less than three percent of voters.