El hoyo es profundo y el camino es largo

El 20 de septiembre el National Bureau of Economic Research, la entidad encargada de determinar los puntos de inflexión de los ciclos económicos en Estados Unidos, anunció que la recesión más reciente, que comenzó en diciembre de 2007, terminó oficialmente en junio de 2009.  La duración de 18 meses la hace la más larga desde la Gran Read More

Darkness Visible: A Financial Analysis of the Puerto Rico Electric Company

The Center for the New Economy released its latest analysis of the Puerto Rico Electric Power Authority on June 1.   This is CNE’s third look, since 2005, at the electricity sector in Puerto Rico.  Some of the highlights in this report include the following: Financial losses continue. For fiscal years 2009, 2008, and 2007, PREPA incurred losses Read More

Puerto Rico’s Pension System: Knocking on Heaven’s Door

The Employees Retirement System of the Commonwealth of Puerto Rico (the “ERS”) is a trust created by Act 447 of May 15, 1951 to provide pension and other benefits to retired employees of the government of Puerto Rico and its instrumentalities.

Puerto Rico’s Fiscal Performance

About two weeks ago, the Center for the New Economy published its third annual assessment of Puerto Rico’s Fiscal Situation.  As of May 2010 the Commonwealth’s fiscal situation remains complicated.  With respect to the current fiscal year, projections are for the Commonwealth government to close the books with a general fund deficit of $2.5 billion, Read More

The Outlook for 2010

In 2009, according to The Economist magazine, world output shrank by more than 1 per cent, the first time since 1945 that it has declined on a year-over-year basis.  At the same time, years of excessive lending and irrational asset pricing finally caught up with the world’s financial system.  Governments across the world responded to Read More

Brookings cuatro años después

A casi cuatro años de haber participado de los trabajos del Informe CNE/Brookingssobre la economía de Puerto Rico, el Dr. Barry Bosworth, Senior Fellow del Instituto Brookings, encuentra que la situación económica de Puerto Rico se ha deteriorado marcadamente.  En parte, este deterioro se debe al impacto de la profunda crisis económica y financiera a nivel global.  Sin embargo, Read More

The Wages of Debt

Here’s an excerpt from our latest report, written by Sergio Marxuach, on the worrying trends regarding Puerto Rico’s public debt. The full report is available here. We have also posted a brief interview, in Spanish, that explains the nuts and bolts of the report. Puerto Rico’s public finances are on an unsustainable path.  As shown Read More