Puerto Rico On Track For Wider Current Account Surplus In FY2021

• Puerto Rico will continue to run wide current account surpluses in the years ahead, as exports recover from the COVID-19 shock and federal aid inflows remain high.
• Fitch Solutions forecasts Puerto Rico’s surplus will widen to 11.0% of GNP in the Fiscal Year 2021 (FY21; July 2020-June 2021), from an estimated 8.6% in FY20.
• Risks to the agency’s view have diminished, as the transition to the Biden administration and a Democrat-controlled Congress should remove obstacles to aid disbursement.

(Source: Fitch Solutions)