NEWS

Housing is one of the cornerstones of our economy. It is a sector that has gone unscathed during the recent economic slowdown, a sector that spurs construction, keeps the banks thriving, and fuels consumption through refinancing. A soft monetary policy has boosted mortgage loans as never before, and such a demand has pushed up housing prices in. In this issue, we review the latest trends in housing and the effects of the extremely low interest rates over this sector. Find out how housing prices have behaved and what the future might bring to housing and the overall economy.

No social or economic development goals can be met without adequate and efficient provision of water. In simple words: water is vital, without it, life cannot exist. Despite the fact that water is an infinitely renewable resource and that Puerto Rico is well endowed with water resources, the faces a tremendous challenge in improving water management. Ensuring quality of service, maintaining water reserves, and revamping the water governing system require critical measures for enhancing future quality of life and competitiveness. This issue analyses the challenges of managing water in, a task that has bounced from the Government to the private sector and back to the hands of the Government.

A phantom is roaming the planet and rattling the nerves of first world professionals: outsourcing. The service sector, the untouched harbor of many professionals in the US as well as in Europe, has witnessed the exodus of thousands of jobs to more attractive destinations. In this issue, we address this new phenomenon, which is revolutionizing labor markets across the globe and leaving many wondering whatever happened overnight. We provide some insights on the recent trends of worldwide outsourcing and examine the implications for Puerto Rico. Join us for an analysis and call to action of what PR should do to avoid being a loser in this global contest.

Yes, it is true. Recovery has finally returned. After a shallow plunge in fiscal 2002, the PR economy perked up in fiscal 2003. The economy managed to go through high oil prices, new onerous excise taxes and a hostile international environment, featuring war, loss of jobs and a sickly stock market. We are indeed back on the path of positive growth, but it is yet too early to celebrate. Despite the promising outlook in the short run, our economy needs to overcome structural flaws and will have to rethink itself. Join us for a review of the main developments in fiscal 2003 and our forecast up to fiscal 2006. This issue will also discuss the challenges that lie ahead.

The economy runs on energy. It is a fact that all economic activities require the consumption of energy. The intrinsic relationship between energy consumption and economic growth urges to secure energy reserves to spur long-term growth. In addition, future competitiveness will depend, in part, on attractive energy prices and lower environmental impacts. This issue presents a brief assessment of the energy sector in and highlights the necessary steps to enforce a transition towards a new energy phase in the island.

Compared to other economies in the region, Puerto Rico’s educational system has lowered the historically low levels of illiteracy and increased the demand for professionals, such as, engineers, registered nurses, and teachers. Despite such success, there are problems. In this issue, find out how the island compares internationally; what are the threats and possible outcomes if solutions are not adopted. Can PR afford to squander its most valuable resource: people? Is this the time to develop a new vision of what the new educational system of Puerto Rico should look like in the next twenty years?

Year 2003 was tough, with challenging global trends shifting towards China and India; continuing US and worldwide economic slowdown, the war against Iraq, and some signs of recovery that are just now more obvious. Puerto Rico experienced stagnation in public construction, continuing high unemployment, efforts to initiate a tax reform and mixed signals in manufacturing. In this issue, find out what is at stake if Puerto Rico does not embrace a new vision of the future.

Globalization and continuous changes in world economic trends press policy makers to constantly assess development goals in order to enhance national competitiveness. Puerto Rico is no exception. Assessing its competitiveness and international standing is a critical component in the formulation of a long-term vision. In this issue we present a series of comparative measures that examine Puerto Rico against regional and global players. Specifically, we compiled comparative indicators that point to Puerto Rico`s position and need of a strategic vision in key areas within economic and social development and the environment.

Now is the time to introduce three additional coincident indices that target the “sweetest” but most controversial side of the economy. These coincident indices cover construction, consumption, and banking. They depict the external face of the economy, the face we see every day while we buy, drive, and make money transactions. They are the side of the economy that poses many challenges to economists and policymakers. Our challenge is to uncover the first layer of these sectors and address the real causes of their somewhat strange behavior. Come along and enjoy another fascinating trip to the heart of our economy.

The issue of monitoring the economy is as fascinating as complicated and uncertain. As in the case of natural disasters, the sooner the detection, the sooner and more accurate the corrective move. Finding the best way to explain what is going on the economy and anticipate the next turn of the economy have drawn the attention of economists for a long time. The task of tracking the economy becomes more difficult at the state level, due to the lack of appropriate indicators. In this issue, we briefly review our current kit of economic tools and also present two of five indices developed by HCCG and aimed to track the economy’s performance. So, buckle-up and travel with us inside the PR economy.