Interesting Puerto Rico Economy Facts That You Probably Didn't Know

Puerto Rico is regarded to be one of the most dynamic and competitive economies in Latin America.

The World Bank classifies Puerto Rico's economy as high-income. The World Economic Forum has named it the most competitive economy among Latin American countries and partly contributes to the U.S. economy.

Did you know that during the late 20th century, most of the island's poverty had vanished? Thanks to increased manufacturing but also the growing importance of services, particularly tourism.

The income from U.S. federal agencies operating in Puerto Rico and numerous social welfare programs helped to enhance the living standard.

Like that any other state in the union, the financial sector of Puerto Rico belongs to the U.S. financial system.

The industry is governed by federal regulations, which fall under the jurisdiction of the Federal Reserve Bank of New York, which is responsible for carrying out the monetary policy set by members of the Federal Reserve Board in Washington, D.C.

As you continue with this article, you will be fascinated to discover many Puerto Rico facts, including information about the Puerto Rico economic crisis. Equally fascinating are our other articles that include Austria facts and Finland facts. 

Puerto Rico History

Can you think of a better way to enjoy your vacation at any time of the year on stunning beaches? With the lovely sunshine of the Caribbean island, Puerto Rico attracts tourists from around the globe all year round.

We are talking about the economy of this small island because these visitors throng the place all year round to see, enjoy, and build memories amidst nature's wonders. Here are some interesting economic facts before you visit the country.

The Puerto Rican government had borrowed excessively in the late 1990s and early 2000s to maintain the luxurious lifestyle that most Puerto Ricans had grown accustomed to.

By 2006, the local Department of Education and 42 other government agencies had been forced to close due to a severe cash-flow shortage. In the first-ever partial government shutdown in Puerto Rico's history, all 1,536 public schools were closed, and 95,762 employees of Puerto Rico lost their employment.

On May 10, 2006, the budget issue was resolved when a new tax reform agreement was reached, allowing all government employees to return to work.

By 2015, the government/public debt had risen to more than $70 billion (plus $49 billion in pension commitments). This is one of the numerous negative economic factors that have prompted concern in the U.S. municipal bond market, including high debt-to-population ratios.

However, in 2016, Congress passed legislation that established a federal board to supervise Puerto Rico's finances and authorized the island to restructure its public debt.

The federal control board granted the government of Puerto Rico time to develop a fiscal plan (including creditor discussions) to address the issues. A debtors' litigation moratorium was also extended.

According to the federal reserve bank, consumer expenditure in Puerto Rico fell roughly 1.8% on average between 2012 and 2017, although per capita income increased. Meanwhile, the Puerto Rican government privatized several state-owned firms, including hotels, food processing plants, telecommunications and transportation companies, and hospitals, to avert the future Puerto Rico economic crises and preserve the island's GDP.

Tax concessions were given to promote participation, with mainland enterprises being excused from federal taxes. Differential rental rates for industrial buildings were provided, and U.S. firms located in Puerto Rico were allowed to send earnings to their parent corporations at any time without paying federal tax on corporate income, thus providing tax exemptions.

Did you know? The island of Puerto Rico was discovered in 1493 by Columbus during his second voyage to the New World.

Interestingly, Christopher Columbus claimed the island as a colony of Spain then, to never return. And thus, it became the world's oldest colony. And during the Spanish-American war, which took place in 1848, Puerto Rico became U.S. territory.

Here is a list of the names the island has embraced until today since we know of its history.

Before the island was discovered, the locals used to call it Borikén, which meant the land of the valiant and noble lord and referred to the creator or great spirit in the Taino language.

When Columbus discovered it, he named the island 'San Juan Bautista' after St. John the Baptist. As we already know, it later became a Spanish colony, riches and gold were exported to Spain.

Looking at such enormous riches, Spain called it 'Ciudad de Puerto Rico,' which meant rich port city. Back then, gold was found in rivers and streams of the island by traders & maritime visitors. And they fondly called it Puerto Rico.

By 1521, the island was famously known as Porto Rico, with its main trading and shipping port being San Juan. After the war in 1898, there was a treaty, known as the Treaty of Paris, under which San Juan became the first port under the American flag.

In 1931, Félix Córdova Dávila introduced a joint resolution congress, and the name was changed from Porto Rico to what we know today as Puerto Rico.

Finally, in 1952, its name was officially changed to 'Estado Libre Asociado de Puerto Rico,' which translates to the free associated state of Puerto Rico. It has an official English name as well, the Commonwealth of Puerto Rico.

Puerto Ricans are called Boricuas. Puerto Ricans are the citizens of Puerto Rico, as is evitable from the name. They call the island Borinquén a derivative term from its oldest name, Borikén, in the Taino language, the language of the then local Taino Indians.

What is Puerto Rico famous for?

Puerto Rico has a varied topography with mountains, waterfalls, and tropical rainforests. Beautiful beaches, Spanish Caribbean culture with an American influence are the things that come to one's mind when one thinks of the island.

Puerto Ricans are very proud of their cultural heritage and history, and why should they not be since it includes Taino, Spanish, and African cultures blended together. This Caribbean paradise has many things to offer, whether through music, art, food, traditions, festivals, or one of many other abundant alternatives.

One of its historical places, Old San Juan, is now classified as a Unesco World Heritage Site! You'll feel like you've stepped into history as you walk through the wonderful 16th-century fortresses with cobblestone streets that have fountains, museums, and more.

Don't forget to visit La Fortaleza, the oldest executive residence, which has been known as the governor's mansion for centuries. El Morro and Castillo San Cristóbal, are the majestic citadels. The Spanish built these in the 16th century, which are the most significant military structures in the Caribbean.

Puerto Rico is also known as the Island of Enchantment. The island has captivated people from all over the world for years with its colonial architecture, tropical climate, diversified landscapes, and traditional cuisine.

People from across the globe visit this tiny island of Puerto Rico for apparent reasons. Reasons like the warm, tropical weather, its rich history, and diverse landscapes.

Did you know that El Yunque is the only rainforest located on the island of Puerto Rico in the United States Forest System?

Mangrove islands, rain forests, coral reefs, salt flats, bays, distinctive karst zones, and caverns are part of Puerto Rico's natural environments. With a range of coastal to mountainous locations and beaches, the island is picturesque, and at the beach, you can swim in crystal-clear waters or ride a bike through Guánica's Dry Forest.

You can go kayaking, fishing, or boating in Toro Negro Island's center, which houses a park containing nine rivers and two lakes.

There are bioluminescent bays in Puerto Rico that are open throughout the year. Your visit to these bays will be a bizarre eco-adventure. On a kayak, on a moonless night, you can experience displays of sparkling water as you paddle.

The bays' hypnotic brightness is because of the presence of microscopic, single-celled organisms called dinoflagellates that light up when the water is stirred. Mosquito Bay, Laguna Grande, and La Parguera are three famous bays on the island of Puerto Rico. Don't miss out on them.

A significant share of the Puerto Rican economy is contributed by tourism. Around 6.9% of Puerto Rico's GDP is contributed by travel.

Other exports of Puerto Rico's economy are the manufacturing sector that includes pharmaceuticals, medical equipment, textiles, petrochemicals, and electronics, and the service sector includes finance, insurance, real estate, and tourism. Plaza Las Américas is the largest shopping area in the Caribbean, and Casa Bacard is the world's largest rum production unit.

Both are located in Puerto Rico and help contribute to the Puerto Rico economy today.

Puerto Rico has its own observatory. The world's largest telescope is located in the Arecibo Observatory. It has a visitor center, and tours are available in the town of Arecibo.

This place is about an hour away from the capital city San Juan. Professors from Cornell University played a vital role in its development. The radio telescope that one can see now in the observatory has been operational for nearly 55 years.

Why do you think Puerto Ricans are proud of Puerto Rican birth? This is because the list of successful Puerto Rican celebrities is seemingly limitless.

Jennifer Lopez, Marc Anthony, and Ricky Martin are among the most well-known musicians in the world. Baseball players Carlos Beltran, Roberto Alomar, and Yadier Molina are well known.

Famous boxers include Miguel Cotto and Felix Tito Trinidad, and, on a golf course, you will hear the name of golfer Juan Chi-Chi Rodrguez. And basketball their favorite sport-produced world-famous players José Juan Barea and Carlos Arroyo. On a tennis court, you have the player Mónica Puig.

These are just a few outstanding Puerto Rican athletes. Most Puerto Ricans are known to explore their horizons and hence their popularity.

Puerto Rico Population

It is not about the total population of Puerto Rico as such should be considered with the count of only those who is residents there. Other than the Puerto Ricans, many tourists also reside in this place.

This floating population of visitors or tourists is an essential part of the island's everyday life as they influence many aspects of the population of this attractive island.

According to the United Nations Worldometer's elaboration data, Puerto Rico's current population is 2,758,501.

Puerto Ricans are a mix of Spanish, African, and indigenous Tanoas well as Carib Indian races. All these people shared the island and hence are the reason for the present-day Puerto Rican genes and culture.

Many of the Puerto Rican communities including Utuado, Mayagüez, and Caguas, still have Tano names. Also, Puerto Ricans have a good share of European genetics. And therefore, there is no such thing as a full Taino Puerto Rican.

Language and religion in Puerto Rico: Official languages of Puerto Rico are Spanish and English. Interestingly, you will find people speaking Spanglish, a mixture of both languages. Coming to religion, according to a survey, a majority of about 56% of Puerto Ricans are Catholics.

Puerto Ricans are famous for their great hospitality and are known for being outgoing and welcoming by nature. Puerto Rico remains one of the safest islands with a lower crime rate than many mainland U.S. cities.

Here is a list of various natural fruits found in Puerto Rico: Mallorca, quesito, café with Leche, tostada, pan de agua, Revuelto. These are the best Puerto Rican breakfast delicacies.

Other breakfast items showcase some of Puerto Rico's culture and flavor, and you will love them. The Pina Colada has been recognized as Puerto Rico's national drink since 1978. It is a sweet and creamy tropical beverage.

These are the famous delicacies of Puerto Rico: crunchy cod fritters, bacalaitos, sweet plump cornmeal fingers, empanadillas, crescent-shaped turnovers filled with beef, crab, conch, and lobster. Soups are a common way to start a meal.

Did you know Lopez is one of the most prevalent surnames in Puerto Rico that came down from Spain? López, a patronymic Lope from Latin lupus, means wolf. Spanish people came to Puerto Rico, a staunchly orthodox Spanish province in the early 1800s, to escape Simón Bolvar's independence campaigns in South America.

Weird Facts About Puerto Rico

Let us look at a few of the interesting and a few weird facts about Puerto Rico. As you have already seen in this article, Puerto Rico is one of the beautiful places on earth, with diverse natural habitats and cultures.

Puerto Ricans are great at having visitors and also do not hesitate to explore.

With rich history and heritage, the island of Puerto Rico attracts many tourists from across the globe all through the year. And it is no surprise that the place has many attractions to its credit.

Puerto Rico is a group of islands. At the same time, several islands are part of Puerto Rico where no one lives, but visitors can enjoy a day excursion to these beautiful locales.

There are almost 270 mi (434.52 km) of beaches on the island, ranging from coral-rich coasts to white sand, black magnetic sand, and reddish sand.

Mona Island is a Caribbean version of the Galapagos Islands, complete with iguanas. Mona iguanas are a subspecies of iguanas that are only found on this island and nowhere else on the planet. Permission from the Puerto Rico Department of Natural and Environmental Resources is required to visit this island.

In the El Yunque Rainforest, it rains every day. And there are still a lot of uninhabited virgin islands out there.

The coqui, a tiny tree frog, is Puerto Rico's national animal. This small frog is distinguished from other frog species by its lack of webbed feet. Because of their weightlessness, these frogs can climb up to 100 feet in the trees and float to the ground in the event of danger.

The Cavernas del Rio Camuy is the world's third-largest cave network, with experts estimating that the Ro Camuy, the world's third-largest underground river, has cut out another 800 tunnels yet to be explored.

Do you know what Puerto Rico's national dish is? It's Arroz with Gandules, which consists primarily of rice and pigeon peas.

Puerto Rico imports a large portion of the molasses it needs for its thriving rum industry.

Even though Puerto Rico is not a sovereign state, it participates in Olympic and Miss Universe competitions. Deborah Carthy Deu, Marisol Malaret, Rivera, Dayanara Torres, Zuleyka, and Denise Quinones are the five Miss Universe winners from Puerto Rico.

Puerto Rico's status is that of a commonwealth, implying it is neither a state nor an independent country.

Puerto Ricans can have two citizenships: one as a citizen of Puerto Rico and the other as a citizen of the United States.

Even though Puerto Ricans are citizens of the United States, they are not permitted to vote in presidential elections. In addition, there is no vote on this island in the United States Congress.

All visitors to Puerto Rico, except for U.S. citizens, must obtain a visa.

Cobblestones formed from iron slag, a byproduct of the smelting process, are greyish blue in hue. Spanish traders utilized these cobblestones as ballast on their empty ships returning from Europe. Since these were used to pave the streets of Old San Juan, you may still see them now.

Because both the metric and imperial measuring systems are utilized in Puerto Rico, gas is sold in liters while milk is sold in gallons.

The Birth of the New World statue is twice as tall as The Statue of Liberty. Christopher Columbus is shown in the statue.

Here at Kidadl, we have carefully created lots of interesting family-friendly facts for everyone to enjoy! If you liked our suggestions for Iceland facts, why not look at Hungary facts or Jamaica facts.