The Gross Domestic Product (GDP) in Puerto Rico was worth 104.99 billion US dollars in 2019, according to official data from the World Bank and projections from Trading Economics. An aging population means less tax revenue and greater expenditures. For a while, Puerto Rico had something else to drive its economy. “Puerto Rico debt was a hot commodity on the bond market,” Chappuis said. The Puerto Rican government-debt crisis is a financial crisis affecting the government of Puerto Rico. National Association of Insurance Commissioners (NAIC) is a nonprofit organization that helps develop model laws for state insurance regulators. Because so many of the territory's residents receive government assistance to pay for health care, providers struggle perpetually, and their workers are underpaid compared to their peers on the mainland. An aging population, mounting costs of social programs, and a declining population have exacerbated debt problems as well. Puerto Rico's population peaked in 2005 at 3.91 million and has been steadily declining.The amount of money owed by Puerto Rico's pensions in 2019. Hurricane Maria in 2017 delivered another blow to Puerto Rico. Related. We also reference original research from other reputable publishers where appropriate. Bond values plummeted amid concerns Puerto Rico will never be able to repay its debt. "Vera Rosado (2013; in Spanish) "Para mejorar la calidad de servicio, que se impacta principalmente por deficiencias administrativas y no por falta de dinero[...]"Rivera Sánchez (2014; in Spanish) "En 2012 [...] la tasa de captación en el segmento de ventas al detal fue de 52% con una tasa de evasión de 48%. Gianfranco Gaglione / AP file The new governor has also taken steps to address corruption. En el resto de los renglones, la captación fue de 56% con una evasión de 44%. The island's economy began to sputter, and after the great recession, the decline in the island's governmental finances continued.
"Ruiz Kuilan (2014; in Spanish) "La portavoz de la minoría penepé en la Cámara, Jennifer González [...] sostuvo que junto con el gobernador el mensaje que se pretende difundir es uno alarmista para inquietar al País y que al final se tomen medidas menos severas. Compared to other states and territories, spending on social programs is disproportionately high in Puerto Rico. "Quintero (2013; in Spanish) "Los indicadores de una economía débil son muchos, y la economía en Puerto Rico está sumamente debilitada, según lo evidencian la tasa de desempleo (13.5%), los altos niveles de pobreza (41.7%), los altos niveles de quiebra y la pérdida poblacional. Another serious problem stems from Puerto Rico's underfunded social safety net.
These include white papers, government data, original reporting, and interviews with industry experts. "Acevedo Denis (2013; in Spanish) "Para el profesor de la Escuela Graduada de Administración Pública de la Universidad de Puerto Rico, Rafael Torrech San Inocencio, más que una cuestión de que funcionarios del Gobierno devenguen altos salarios, es si tienen o no las competencias para los cargos que ocupan. When a Puerto Rican resident is no longer of working age, the government not only loses out on tax revenue from his income but, due to high levels of The territory's remote island location, tiny land area, and lack of natural resources precluded it from ever developing a strong manufacturing base. More than 60% of Puerto Ricans receive Medicare or Medicaid. Puerto Rico entered bankruptcy in May 2017 to restructure $120 billion of debt and pension obligations. "Hitchcock; Aldrete Sánchez (2014) "That the rating is not lower is due to the progress the current administration has made in reducing operating deficits, and what we view as recent success with reform of the public employee and teacher pension systems, which had been elusive in recent years.
The primary exception is when an investor purchases a bond issued by his state of residence, as in a Floridian buying a Florida municipal bond.