Travel Reference
In-Depth Information
THE ECONOMIC DOWNTURN
Like so many other places in the world, Puerto Rico's economy was sent in a downwards
spiral with the Global Financial Crisis. The effect on the island was immediate and stark:
many places included in the previous edition of this guide were found shuttered, with the less
touristic south coast particularly hard hit. Unemployment stood above 16% in early 2011,
nearly twice the US average. Almost all visible road and infrastructure development projects
were next to signs boasting of the Obama administration's 2009 Federal Recovery and Rein-
vestment Act.
Though Puerto Rico's economy is weak in comparison to most US states, it boasts one of
the most dynamic economies in the Caribbean. If you arrive from Jamaica or the Dominican
Republic the differences are palpable.
Dreamt up in the 1950s and '60s, Operation Bootstrap succeeded in converting Puerto
Rico from an agricultural society into an industrial powerhouse. Tax incentives introduced
by prophetic island governor Luis Muñoz Marín led to long-term US investment on the is-
land and growth in both the pharmaceutical and tourism industries. That said, Puerto Rico's
per capita GDP is significantly lower than the US's poorest state (Mississippi), and 45% of
its population lives below the poverty line.
Fast Facts
» Population: 4.4 million
» Population growth rate: 0.27%
» GDP (per capita): $17,100
» Life expectancy: 78.7 years
» Literacy rate: 94.1%
» Unemployment: 16.4%
» Percentage of adults with cell phones: 73%
» Internet users: 1,222,000
