Puerto Rico June 2014 Analysis

Risk Summary - Puerto Rico - JUNE 2014

Puerto Rico's governor, Alejandro García Padilla, rolled out a balanced budget on April 29. The proposed budget plan for the financial year, which begins July 1, focuses on spending cuts and...

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Economic Analysis - Recession To Remain As Consumption Continues To Weaken - JUNE 2014

We expect recessionary conditions in Puerto Rico to prevail through fiscal year 2015 at least, as declining household spending, driven by weak labour market dynamics, will continue to weigh on overall economic activity. In addition, as the government attempts to improve a precarious debt position, fiscal pressures will drive authorities to cut back on spending, further hampering private consump...