Growth To Fade As Federal Aid Falls

According to Fitch, Puerto Rico will see a continued recovery in economic activity as federal reconstruction funds stimulate domestic demand.

However, structural headwinds will undermine growth as federal aid fades in the years ahead unless significant reforms are made.

Fitch forecasts real GNP growth of 5.9% in Fiscal Year 2019 (FY19; July 2018 – June 2019), from an estimated 9.1% contraction in FY18. This is an upgrade from their previous forecast of 4.8%, as the recovery in economic data has been stronger than they anticipated. 

Source: Fitch