Puerto Rico Population (million)

Recently released data confirmed that the economy struggled in Q2 FY 2023 (October–December 2022) in the aftermath of hurricane Fiona, which made landfall on the island in September. Economic activity contracted at sequentially sharper paces in October and November—when it declined at the steepest rate since February 2021. More positively, economic activity expanded 0.6% year on year in December. However, the positive result was not enough to pull Q2’s average growth into positive territory, contrasting Q1’s healthy expansion. Additionally, price pressures intensified through October and remained elevated in November, which likely weighed on spending: Merchandise imports growth softened markedly year on year in October. Turning to the external sector, goods exports declined at the steepest annual pace in five months in October, signaling cooling demand abroad.