Q2/2020 – The 70% Puerto Rico Economy
Analysis of economic indices in Q2-2020 for Puerto Rico
As of Q2-2020, the Puerto Rico economy is an average 70% of what the quarterly indices used to be in Q2-2006, just before the onset of the current economic depression. This reduction in the economy is miserable and far from “normal”. By all major metrics, most economic sectors have been adversely affected and the fear of a second wave of Covid-19 will cause even more financial hardship to households, municipal, and the central government in PR. Even before the Covid-19 pandemic, unemployment was far worse than the official unemployment rate. The effects of the Covid-19 induced recession will likely be profound and long-lasting. Fear of the disease and uncertainty regarding prospects for a vaccine or whether immunity will endure impacts consumers and the goods and services they normally buy and sponsor. Many businesses are also strapped for cash reserves and cannot withstand continued lockdown or even partial lockdown. No doubt, joblessness will worsen and cause even casual work hard to come by.
