Puerto Rico

Puerto Rico is Spanish for 'rich port'., derived from the Indigenous term (or Borinquen), which is popularly said to mean 'Land of the Valiant Lord'. The terms , , and are commonly used to identify someone of Puerto Rican heritage, and derive from the term /. The island is popularly known in Spanish as , meaning "the island of enchantment". Christopher Columbus named the island in honor of Saint John the Baptist, while the capital city was named ("Rich Port City"). The anglicized name was used by the U.S. government and private enterprises. The name was changed back to Puerto Rico in 1931 by a joint resolution in Congress introduced by Félix Córdova Dávila. The official name in Spanish is ("Free Associated State of Puerto Rico"), while its official English name is Commonwealth of Puerto Rico. Puerto Rico remains a territory of the United States, exercising substantial internal self-government but subordinated to the U.S. Constitution in areas such as foreign affairs or defense. For this reason, it is not considered to be a full-fledged associated state under either international or U.S. domestic law. ==History==

Early settlement and European conquest village, located at the spot in which their remains were discovered in 1975, in the aftermath of Hurricane Eloise The history of Puerto Rico began with the settlement of the Ortoiroid people before 430 BC. At the time of Columbus's arrival in the New World in 1493, the dominant Indigenous peoples were the Taíno. The Taíno people's numbers went dangerously low during the later half of the 16th century because of new infectious diseases carried by Europeans, exploitation by Spanish settlers, and warfare. Located in the northeastern Caribbean, Puerto Rico formed a key part of the Spanish Empire from the early years of the exploration, conquest and colonization of the New World. The island was a major military post during many wars between Spain and other European powers for control of the region in the 16th, 17th and 18th centuries. , ca.1808 In 1593, Portuguese soldiers, sent from Lisbon by order of Phillip II, composed the first garrison of the San Felipe del Morro fortress in Puerto Rico. Some brought their wives, while others married Puerto Rican women, and today there are many Puerto Rican families with Portuguese last names. The smallest of the Greater Antilles, Puerto Rico was a stepping-stone in the passage from Europe to Cuba, Mexico, Central America, and the northern territories of South America. of Puerto Rico during Spanish provincial times (1886)|leftThroughout most of the 19th century until the conclusion of the Spanish–American War, Puerto Rico and Cuba were the last two Spanish colonies in the New World; they served as Spain's final outposts in a strategy to regain control of the American continents. Realizing that it was in danger of losing its two remaining Caribbean territories, the Spanish Crown revived the Royal Decree of Graces of 1815. The decree was printed in Spanish, English and French in order to attract Europeans, with the hope that the independence movements would lose their popularity and strength with the arrival of new settlers. Free land was offered to those who wanted to populate the islands on the condition that they swear their loyalty to the Spanish Crown and allegiance to the Catholic Church. U.S. era In 1898, during the Spanish–American War, Puerto Rico was invaded and subsequently became a possession of the U.S. The first years of the 20th century were marked by the struggle to obtain greater democratic rights from the U.S. The Foraker Act of 1900 established a civil government, ending rule by American generals and the Department of War. A 1906 U.S. Supreme Court ruling, Ortega v. Lara, , involving the Foraker Act and referring to the island as "the acquired country", affirmed that the U.S. Constitution applied within its territory and that any domestic Puerto Rican laws which did not conflict with it remained in force. The Jones–Shafroth Act of 1917 made Puerto Ricans U.S. citizens. The act paved the way for the drafting of Puerto Rico's Constitution and its approval by Congress and Puerto Rican voters in 1952. During the Cold War period, Puerto Rican politics continued to be shaped by debates over political status-particularly independence and the meaning of the commonwealth arrangement established in 1952. In the early commonwealth years, pro-independence organizing continued bit it faced significant legal and policing restrictions, including the 1948 Ley de la Mordaza (Law 53), which curtailed a range of political expression associated with the independence movement. The period also included high-profile nationalist actions intended to draw attention to independence demands, including the 1950 uprisings and the 1954 attack in the U.S. House of Representatives. During this time, the constitution took effect after congressional review required amendments as a condition of approval, most notably the removal of Article II, Section 20 (a social and economic rights provision), before Puerto Rico's constitutional convention accepted the revisions and put into effect the final text.Puerto Ricans also served in U.S. military operations; the 65th Infantry Regiment (the "Borinqueneers") fought in the Korean War between 1950-1953. Puerto Rico is one of five territories with less representation in the federal government, along with Washington, D.C. 21st century In 2009 the United Nations Special Committee on Decolonization approved a draft resolution calling on the U.S. government to expedite a process that would allow the Puerto Rican people to exercise fully their inalienable right to self-determination and independence. In 2012, a two-question referendum took place, simultaneous with the general elections. The first question, voted on in August, asked voters whether they wanted to maintain the current status under the territorial clause of the U.S. Constitution. 54% voted against the status quo, effectively approving the second question to be voted on in November. The second question posed three alternate status options: statehood, independence, or free association. 61.16% voted for statehood, 33.34% for a sovereign free-associated state, and 5.49% for independence. A 2017 status referendum also indicated a desire for statehood, although voter turnout was meager. The 2016 Puerto Rico Oversight, Management, and Economic Stability Act established financial oversight board to oversee debt restructuring in response to the Puerto Rican government-debt crisis. In particular, the authority to establish the control board derives from the federal government's constitutional power to "make all needful rules and regulations" regarding U.S. territories. By May 2017, with $123 billion in debt owed by the Puerto Rican government and its corporations, the board requested the appointment of a federal judge to resolve the "largest bankruptcy case in the history of the American public bond market." In 2017, Puerto Rico suffered back-to-back large hurricanes: the Category 5 Hurricane Irma and the Category 4 Hurricane Maria. The storms caused an extreme amount of damage to the island, causing the following effects: all power was knocked out, 95% cell service, 43% of waste water treatment plants, 40 thousand land slides, 97% of roads blocked, 28% of health facilities damaged, leading to over 90% of the population applying for assistance after the storms. Puerto Rico held its statehood referendum during the November 3, 2020, general elections; the ballot asked one question: "Should Puerto Rico be admitted immediately into the Union as a State?" The results showed that 52 percent of Puerto Rico voters answered yes. In the United States in the early 2020s, the Puerto Rico Status Act was being worked on by Congress, and H.R. 8393 passed the House in 2022—though it did not pass the Senate. In the November 5, 2024, elections, Puerto Ricans again voted for statehood. Jenniffer González-Colón, who is pro-statehood, won the office of governor with nearly 40% of the vote. ==Geography==

, in southeast Puerto Rico|alt= Puerto Rico consists of the main island and various smaller islands, including Vieques, Culebra, Mona, Desecheo, and Caja de Muertos. Of these, only Culebra and Vieques are inhabited year-round. Mona, which has played a key role in maritime history, is uninhabited most of the year except for employees of the Puerto Rico Department of Natural Resources. There are many other islets, like Monito, located near Mona, and Isla de Cabras and La Isleta de San Juan, both located on the San Juan Bay. The latter is the only inhabited islet with communities like Old San Juan and Puerta de Tierra, which are connected to the main island by bridges. The Commonwealth of Puerto Rico has an area of , of which is land and is water. The maximum length of the main island from east to west is , and the maximum width from north to south is . Puerto Rico is the smallest of the Greater Antilles. The topography is mostly mountainous with large flat areas in the northern and southern coasts. The main mountain range that crosses the island from east to west is called the Cordillera Central. The highest elevation, Cerro de Punta , Puerto Rico has 17 lakes, all man-made, and more than 50 rivers, most of which originate in the Cordillera Central. Rivers in the north are typically longer and of higher water flow rates than those of the south, since the south receives less rain than the central and northern regions. Puerto Rico is composed of Cretaceous to Eocene volcanic and plutonic rocks, overlain by younger Oligocene and more recent carbonates and other sedimentary rocks. Most of the caverns and karst topography on the island occurs in the northern region. The oldest rocks are approximately years old (Jurassic) and are located at Sierra Bermeja in the southwest. They may represent part of the oceanic crust and are believed to come from the Pacific Ocean realm. Puerto Rico lies at the boundary between the Caribbean and North American plates and is being deformed by the tectonic stresses caused by their interaction. These stresses may cause earthquakes and tsunamis. These seismic events, along with landslides, represent some of the most dangerous geologic hazards in the island and in the northeastern Caribbean. The 1918 San Fermín earthquake had an estimated magnitude of 7.5 on the Richter scale. It originated off the northern coast and was accompanied by a tsunami. It caused extensive property damage and widespread losses, damaging infrastructure, especially bridges. It resulted in an estimated 116 deaths and $4 million in property damage. The failure of the government to move rapidly to provide for the general welfare contributed to political activism by opponents and eventually to the rise of the Puerto Rican Nationalist Party. On January 7, 2020, the island experienced its largest earthquake since 1918, estimated at magnitude 6.4. Economic losses were estimated to be more than $3.1 billion. The Puerto Rico Trench, the largest and deepest trench in the Atlantic, is located about north of Puerto Rico at the boundary between the Caribbean and North American plates. It is long. At its deepest point, named the Milwaukee Deep, it is almost deep. Climate The climate of Puerto Rico in the Köppen climate classification is mostly tropical rainforest. Temperatures are warm to hot year round, averaging near in lower elevations and in the mountains. Easterly trade winds pass across the island year round. The wet season stretches from April into November, and the dry season occurs from December to March. The mountains of the Cordillera Central create a rain shadow and are the main cause of the variations in the temperature and rainfall that occur over very short distances. The mountains can also cause wide variation in local wind speed and direction due to their sheltering and channeling effects, adding to the climatic variation. Daily temperature changes seasonally are quite small in the lowlands and coastal areas. Between the dry and wet seasons, there is a temperature change of around . This change is due mainly to the warm waters of the tropical Atlantic Ocean, which significantly modify cooler air moving in from the north and northwest. Coastal water temperatures during the year are about in February and in August. The highest recorded temperature was at Arecibo, while the lowest temperature was in the mountains at Adjuntas, Aibonito, and Corozal. The average yearly precipitation is . Climate change in Puerto Rico has had a large impact on the ecosystems and landscapes. Puerto Rico experiences the Atlantic hurricane season, similar to the rest of the Caribbean Sea and North Atlantic Ocean. On average, a quarter of its annual rainfall is contributed from tropical cyclones, which are more prevalent during periods of La Niña than El Niño. On average, a cyclone of tropical storm strength passes near Puerto Rico every five years, and a hurricane passes in its vicinity every seven years. Since 1851, the Lake Okeechobee Hurricane (also known as the San Felipe Segundo hurricane in Puerto Rico) of September 1928 is the only hurricane to make landfall as a Category 5 hurricane. In 2017, Puerto Rico was affected by Category 5 Hurricane Irma and Category 4 Hurricane Maria, causing widespread and devastating impacts, particularly to the electric grid. two biosphere reserves are recognized by the UNESCO Man and the Biosphere Programme: Luquillo Biosphere Reserve represented by El Yunque National Forest and the Guánica Biosphere Reserve. Endemic species include 239 plants, 16 birds, and 39 amphibians/reptiles. Most of these are found on the main island. The most recognizable endemic species and a symbol of Puerto Rican pride is the coquí, a small frog easily identified by the sound of its call, from which it gets its name. Most coquí species (13 of 17) live in the El Yunque National Forest, the only tropical rainforest in the U.S. Forest Service system, located in the northeast of the island. El Yunque is home to more than 240 plants, 26 of which are endemic to the island. It is also home to 50 bird species, including the critically endangered Puerto Rican amazon. The moist forest ecoregion is represented by protected areas such as the Maricao and Toro Negro state forests. These areas are home to endangered endemic species such as the Puerto Rican boa (Chilabothrus inornatus), the Puerto Rican sharp-shinned hawk (Accipiter striatus venator), the Puerto Rican broad-winged hawk (Buteo platypterus brunnescens) and the elfin woods warbler (Setophaga angelae). The Northern Karst Belt is home to one of the remaining rainforest tracts in the island, with the Río Abajo State Forest being the first focus for the reintroduction of the highly endangered Puerto Rican amazon. In the southwest, the Guánica State Forest and Biosphere Reserve contains over 600 uncommon species of plants and animals, including 48 endangered species and 16 endemic species, and is considered a prime example of the Puerto Rican dry forest ecoregion and the best-preserved dry forest in the Caribbean. Examples of endemic species found in this ecoregion are the higo chumbo (Harrisia portoricensis), the Puerto Rican crested toad (Peltophryne lemur), and the Mona ground iguana (Cyclura stejnegeri), the largest land animal native to Puerto Rico. Puerto Rico has three of the seven year-long bioluminescent bays in the Caribbean: Laguna Grande in Fajardo, La Parguera in Lajas and Puerto Mosquito in Vieques. These are unique bodies of water surrounded by mangroves that are inhabited by the dinoflagellate Pyrodinium bahamense. However, tourism, pollution, and hurricanes have highly threatened these unique ecosystems. ==Government and politics==

Puerto Rico has a republican form of government based on the American model, with separation of powers subject to the jurisdiction and sovereignty of the United States. All governmental powers are delegated by the United States Congress, with the head of state being the President of the United States. As an unincorporated territory, Puerto Rico lacks full protection under the U.S. Constitution. The government is composed of three branches. The executive is headed by the governor, currently Jenniffer González-Colón. The legislative branch consists of the bicameral Legislative Assembly, made up of a Senate as its upper chamber and a House of Representatives as its lower chamber; the Senate is headed by a president, currently José Luis Dalmau, while the House is headed by the speaker of the House, currently Tatito Hernández. The governor and legislators are elected by popular vote every four years, with the last election held in November 2024. The judicial branch is headed by the chief justice of the Supreme Court of Puerto Rico, currently Maite Oronoz Rodríguez. Members of the judiciary are appointed by the governor with the advice and consent of the Senate. Puerto Rico is represented in the U.S. Congress by a nonvoting delegate to the House of Representatives, the resident commissioner, currently Pablo Hernández Rivera. Current congressional rules have removed the commissioner's power to vote in the Committee of the Whole, but the commissioner can vote in committee. Puerto Rican elections are governed by the Federal Election Commission and the State Elections Commission of Puerto Rico. Residents of Puerto Rico, including other U.S. citizens, cannot vote in U.S. presidential elections but can vote in primaries. Puerto Ricans who become residents of a U.S. state or Washington, D.C. can vote in presidential elections. Puerto Rico has eight senatorial districts, 40 representative districts, and 78 municipalities; there are no first-order administrative divisions as defined by the U.S. government. Municipalities are subdivided into barrios. Each municipality has a mayor and a municipal legislature elected for a four-year term. The municipality of San Juan is the oldest, founded in 1521. Political parties and elections . Since 1952, Puerto Rico has had three main political parties: the Popular Democratic Party (PPD), the New Progressive Party (PNP) and the Puerto Rican Independence Party (PIP). The three parties stand for different political status. The PPD, for example, seeks to maintain the island's status with the U.S. as a commonwealth, while the PNP seeks to make Puerto Rico a U.S. state. Meanwhile, the PIP seeks to make Puerto Rico a sovereign nation free from U.S. authority. In terms of party strength, the PPD and PNP usually hold about 47% of the vote each while the PIP holds about 5%. After 2007, other parties emerged on the island. The first, the Puerto Ricans for Puerto Rico Party was registered that same year. The party claims that it seeks to address the islands' problems from a status-neutral platform. But it ceased to remain as a registered party when it failed to obtain the required number of votes in the 2008 general election. Four years later, the 2012 election saw the emergence of the Movimiento Unión Soberanista (Sovereign Union Movement) and the Partido del Pueblo Trabajador (Working People's Party) but none obtained more than 1% of the vote. Other non-registered parties include the Puerto Rican Nationalist Party, the Socialist Workers Movement, and the Hostosian National Independence Movement. Political status The nature of Puerto Rico's political relationship with the U.S. is the subject of ongoing debate in Puerto Rico, the U.S. Congress, and the United Nations. Specifically, the basic question is whether Puerto Rico should remain an unincorporated territory of the U.S., become a U.S. state, or become an independent country. , home of the Legislative Assembly in Puerto Rico|alt=|left Constitutionally, Puerto Rico is subject to the plenary powers of the U.S. Congress under the territorial clause of Article IV of the U.S. Constitution. Laws enacted at the federal level in the U.S. apply to Puerto Rico as well, regardless of its political status. Their residents do not have voting representation in the U.S. Congress. Puerto Rico lacks "the full sovereignty of an independent nation", for example, the power to manage its "external relations with other nations", which is held by the U.S. federal government. The U.S. Supreme Court has indicated that once the U.S. Constitution has been extended to an area (by Congress or the courts), its coverage is irrevocable. Puerto Ricans were collectively made U.S. citizens in 1917 as a result of the Jones–Shafroth Act. U.S. citizens residing in Puerto Rico cannot vote in U.S. presidential elections, though both major parties, Republican and Democratic, hold primary elections in Puerto Rico to choose delegates to vote on the parties' presidential candidates. Since Puerto Rico is an unincorporated territory and not a U.S. state, the U.S. Constitution does not fully enfranchise U.S. citizens residing in Puerto Rico. Fundamental rights under the constitution and adjudications are applied to Puerto Ricans. Various other U.S. Supreme Court decisions have held which rights apply in Puerto Rico and which ones do not. Puerto Ricans have a long history of service in the U.S. Armed Forces and have been included in the U.S. compulsory draft when it has been in effect. Though the commonwealth government has its own tax laws, residents of Puerto Rico, contrary to a popular misconception, do pay U.S. federal taxes: customs taxes (which are subsequently returned to the Puerto Rico Treasury), import/export taxes, federal commodity taxes, social security taxes, etc. Residents pay federal payroll taxes, such as Social Security and Medicare, as well as Commonwealth of Puerto Rico income taxes. All federal employees, those who do business with the federal government, Puerto Rico-based corporations that intend to send funds to the U.S., and some others, such as Puerto Rican residents that are members of the U.S. military, and Puerto Rico residents who earned income from sources outside Puerto Rico also pay federal income taxes. In addition, because the cutoff point for income taxation is lower than that of the U.S. IRS code, and because the per-capita income in Puerto Rico is much lower than the average per-capita income on the mainland, more Puerto Rico residents pay income taxes to the local taxation authority than if the IRS code were applied to the island. This occurs because "the Commonwealth of Puerto Rico government has a wider set of responsibilities than do U.S. State and local governments." In 2009, Puerto Rico paid into the U.S. Treasury. Residents are eligible for Social Security benefits upon retirement. They are excluded from the Supplemental Security Income, and the island receives a smaller fraction of the Medicaid funding it would receive if it were a U.S. state. Also, Medicare providers receive less-than-full state-like reimbursements for services rendered to beneficiaries in Puerto Rico, even though the latter paid fully into the system. The authority to enact a criminal code derives from Congress and not from local sovereignty as with the states. Thus, individuals committing a crime can only be tried in federal or territorial court, otherwise it would constitute double jeopardy and is constitutionally impermissible. It also established trade promotion offices in many foreign countries, all Spanish-speaking, and within the U.S. itself, including Spain, the Dominican Republic, Panama, Colombia, Washington, D.C., New York City and Florida. Such agreements require permission from the U.S. Department of State; most are simply allowed by existing laws or trade treaties between the U.S. and other nations which supersede trade agreements pursued by Puerto Rico and different U.S. states. Puerto Rico hosts consulates from 41 countries, mainly from the Americas and Europe, with most located in San Juan. Many Puerto Ricans have served as U.S. ambassadors to different nations and international organizations, such as the Organization of American States, mostly but not exclusively in Latin America. For example, Maricarmen Aponte, a Puerto Rican and now an acting assistant secretary of state, previously served as U.S. ambassador to El Salvador. Military ) throughout the 20th century|alt= The defense of Puerto Rico is provided by the U.S., under the responsibility of U.S. Northern Command. Puerto Rico has its own National Guard and its own state defense force, the Puerto Rico State Guard, which is under the authority of the Puerto Rico National Guard. The commander-in-chief of both local forces is the governor of Puerto Rico who delegates his authority to the Puerto Rico adjutant general, currently Major General José J. Reyes. The adjutant general in turn delegates the authority over the state guard to another officer but retains the authority over the Puerto Rico National Guard as a whole. USS Maryland, Roosevelt Roads Naval Station, 1997|alt= Military presence includes the U.S. Navy at Roosevelt Roads Naval Station, U.S. Army at Fort Buchanan, the Puerto Rican Army and Air National Guards, and the U.S. Coast Guard. A branch of the U.S. Army National Guard is stationed in Puerto Rico – known as the Puerto Rico Army National Guard – which performs missions equivalent to those of the Army National Guards of U.S. states, including ground defense, disaster relief, and control of civil unrest. The local National Guard also incorporates a branch of the U.S. Air National Guard – known as the Puerto Rico Air National Guard. At different times in the 20th century, the U.S. had about 25 military or naval installations in Puerto Rico. The former U.S. Navy facilities at Vieques and Sabana Seca have been deactivated and partially turned over to the local government. Puerto Ricans have participated in many U.S. military conflicts, including the American Revolution, when volunteers from Puerto Rico, Cuba, and Mexico fought the British in 1779 under the command of General Bernardo de Gálvez. They continue to be disproportionately represented in present-day conflicts. The most notable example is the 65th Infantry Regiment of the U.S. Army, nicknamed The Borinqueneers, from the original Taíno name of the island (Borinquen). The all-Puerto Rican regiment participated in World War I, World War II, the Korean War, and the war on terror; in 2014, it was awarded the Congressional Gold Medal for its heroism during the Korean War. A significant number of Puerto Ricans serve in the U.S. Armed Forces, largely as National Guard members and civilian employees. The size of the overall military-related community is estimated to be 100,000, including retired personnel. Fort Buchanan has about 4,000 military and civilian personnel. In addition, approximately 17,000 people are members of the Puerto Rico Army and Air National Guards, or the U.S. Reserve forces. Law The insular legal system is a blend of civil law and the common law systems. Puerto Rico is the only U.S. jurisdiction whose legal system operates primarily in a language other than American English: namely, Spanish. Title 48 of the United States Code outlines the role of the U.S. Code to U.S. territories and insular areas such as Puerto Rico. After the U.S. government assumed control of Puerto Rico in 1901, it initiated legal reforms resulting in the adoption of codes of criminal law, criminal procedure, and civil procedure modeled after those then in effect in California. Although Puerto Rico has since followed the federal example of transferring criminal and civil procedure from statutory law to rules promulgated by the judiciary, several portions of its criminal law still reflect the influence of the California Penal Code. The judicial branch is headed by the chief justice of the Puerto Rico Supreme Court, which is the only appellate court required by the Constitution. All other courts are created by the Legislative Assembly of Puerto Rico. There is also a Federal District Court for Puerto Rico, and someone accused of a criminal act at the federal level may not be accused for the same act in a Commonwealth court, and vice versa, since Puerto Rico as an unincorporated territory lacks sovereignty separate from Congress as a state does. The U.S. Supreme Court held in 2016 that such a parallel accusation would constitute double jeopardy. Crime The homicide rate of 19.2 per 100,000 inhabitants was significantly higher than any U.S. state in 2014. Most homicide victims are gang members and drug traffickers with about 80% of homicides in Puerto Rico being drug related. In 1992, the FBI made armed carjacking a federal crime, and rates decreased per statistics, but as of 2019, the problem continued in municipalities like Guaynabo and others. ==Economy==

per capita development of Puerto Rico Puerto Rico is classified as a high income economy by the World Bank and International Monetary Fund. Puerto Rico's economy is mainly driven by manufacturing (primarily pharmaceuticals, textiles, petrochemicals and electronics) followed by services (primarily finance, insurance, real estate and tourism); agriculture represents less than 1% of GNP. In recent years, it has also become a popular destination for MICE (meetings, incentives, conferencing, exhibitions), with a modern convention center district overlooking the Port of San Juan. Responsibility for San Juan port inspections lies with PPQ. Puerto Rico's geography and political status are both determining factors for its economic prosperity, primarily due to its relatively small size; lack of natural resources and subsequent dependence on imports; and vulnerability to U.S. foreign policy and trading restrictions, particularly concerning its shipping industry. Puerto Rico experienced a recession from 2006 to 2011, interrupted by four quarters of economic growth, and entered into recession again in 2013, following growing fiscal imbalance and the expiration of the IRS Section 936 corporate incentives that the U.S. Internal Revenue Code had applied to Puerto Rico. This IRS section was critical to the economy, as it established tax exemptions for U.S. corporations that settled in Puerto Rico and allowed their insular subsidiaries to send their earnings to the parent corporation at any time, without paying federal tax on corporate income. Puerto Rico has been able to maintain a relatively low inflation in the past decade while maintaining a purchasing power parity per capita higher than 80% of the rest of the world. by economic sector Academically, most of its economic woes stem from federal regulations that expired, have been repealed, or no longer apply to Puerto Rico; its inability to become self-sufficient and self-sustainable throughout history; its highly politicized public policy which tends to change whenever a political party gains power; as well as its inefficient local government which has accrued a public debt equal to 68% of its gross domestic product throughout time. By American standards, Puerto Rico is underdeveloped: It is poorer than Mississippi, the poorest state of the U.S., with 41% of its population below the poverty line. However, it has the highest GDP per capita in Latin America. Puerto Rico's main trading partners are the United States, Ireland, and Japan, with most products coming from East Asia, mainly China, Hong Kong, and Taiwan. Dependency on oil for transportation and electricity generation, as well as dependency on food imports and raw materials, makes Puerto Rico volatile and highly reactive to changes in the world economy. Tourism In 2017, Hurricane Maria caused severe damage to the island and its infrastructure, disrupting tourism for many months. The damage was estimated at $100 billion. An April 2019 report indicated that by that time, only a few hotels were still closed, that life for tourists in and around the capital had, for the most part, returned to normal. By October 2019, nearly all of the popular amenities for tourists, in the major destinations such as San Juan, Ponce and Arecibo, were in operation on the island and tourism was rebounding. This was important for the economy, since tourism provides up to 10% of GDP, according to Discover Puerto Rico. A tourism campaign was launched by Discover Puerto Rico in 2018 intended to highlight the culture and history, branding it distinct and different from other Caribbean destinations. Pharmaceutical manufacturing The pharmaceutical sector is a significant driver of the Puerto Rican economy. Puerto Rico boasts the second largest pharmaceutical manufacturing output in the United States, second to Indiana. Fiscal debt In early 2017, the Puerto Rican government-debt crisis posed serious problems for the government which was saddled with outstanding bond debt that had climbed to $70 billion. The debt had been increasing during a decade-long recession. The Commonwealth had been defaulting on many debts, including bonds, since 2015. With debt payments due, the governor was facing the risk of a government shutdown and failure to fund the managed health care system. "Without action before April, Puerto Rico's ability to execute contracts for Fiscal Year 2018 with its managed care organizations will be threatened, thereby putting at risk beginning July 1, 2017 the health care of up to 900,000 impoverished U.S. citizens living in Puerto Rico", according to a letter sent to Congress by the Secretary of the Treasury and the Secretary of Health and Human Services. They also said that "Congress must enact measures recommended by both Republicans and Democrats that fix Puerto Rico's inequitable health care financing structure and promote sustained economic growth." An internal survey conducted by the Puerto Rican Economists Association revealed that the majority of Puerto Rican economists reject the policy recommendations of the Board and the Rosselló government, with more than 80% of economists arguing in favor of auditing the debt. In early August 2017, the island's financial oversight board (created by PROMESA) planned to institute two days off without pay per month for government employees, down from the original plan of four days per month; the latter had been expected to achieve $218 million in savings. Governor Rossello rejected this plan as unjustified and unnecessary. Pension reforms were also discussed including a proposal for a 10% reduction in benefits to begin addressing the $50 billion in unfunded pension liabilities. Public finances Puerto Rico has an operating budget of about U.S.$9.8 billion with expenses at about $10.4 billion, creating a structural deficit of $775 million (about 7.9% of the budget). The practice of approving budgets with a structural deficit has been done for consecutive years starting in 2000. Throughout those years, including present time, all budgets contemplated issuing bonds to cover these projected deficits rather than making structural adjustments. This practice increased Puerto Rico's cumulative debt, as the government had already been issuing bonds to balance its actual budget for four decades beginning in 1973. Projected deficits added substantial burdens to an already indebted nation which accrued a public debt of $71B or about 70% of Puerto Rico's gross domestic product. This sparked an ongoing government-debt crisis after Puerto Rico's general obligation bonds were downgraded to speculative non-investment grade ("junk status") by three credit-rating agencies. In terms of financial control, almost 9.6%—or about $1.5 billion—of Puerto Rico's central government budget expenses for FY2014 is expected to be spent on debt service. Harsher budget cuts are expected as Puerto Rico must now repay larger chunks of debts in the coming years. For practical reasons the budget is divided into two aspects: a "general budget" which comprises the assignments funded exclusively by the Department of Treasury of Puerto Rico, and the "consolidated budget" which comprises the assignments funded by the general budget, by Puerto Rico's government-owned corporations, by revenue expected from loans, by the sale of government bonds, by subsidies extended by the federal government of the United States, and by other funds. Both budgets contrast each other drastically, with the consolidated budget being usually thrice the size of the general budget; currently $29B and $9.0B respectively. Almost one out of every four dollars in the consolidated budget comes from U.S. federal subsidies while government-owned corporations compose more than 31% of the consolidated budget. The critical aspects come from the sale of bonds, which comprise 7% of the consolidated budget – a ratio that increased annually due to the government's inability to prepare a balanced budget in addition to being incapable of generating enough income to cover all its expenses. In particular, the government-owned corporations add a heavy burden to the overall budget and public debt, as none is self-sufficient. For example, in FY2011 the government-owned corporations reported aggregated losses of more than $1.3B with the Puerto Rico Highways and Transportation Authority reporting losses of $409M, the Puerto Rico Electric Power Authority reporting losses of $272M, while the Puerto Rico Aqueducts and Sewers Authority reported losses of $112M. Losses by government-owned corporations have been defrayed through the issuance of bonds compounding more than 40% of Puerto Rico's entire public debt today. Holistically, from FY2000–FY2010 Puerto Rico's debt grew at a compound annual growth rate of 9% while GDP remained stagnant. This has not always provided a long-term solution. In early July 2017 for example, the PREPA power authority was effectively bankrupt after defaulting in a plan to restructure $9 billion in bond debt; the agency planned to seek Court protection. Cost of living merchant marine shipping routes for Puerto Rico|alt=|left The cost of living in Puerto Rico is high compared to other non-US territories in the region. Compared to the mainland US, overall cost of living is comparable or slightly lower outside of San Juan. Energy and food costs in particular are higher than US average Roughly 85% of groceries sold in Puerto Rico are imported. Cost of living has risen during the 21st century. Statistics used for cost of living sometimes do not take into account certain costs, such as the high cost of electricity, which has hovered in the 24¢ to 30¢ range per kilowatt-hour, two to three times the national average, increased travel costs for longer flights, additional shipping fees, and the loss of promotional participation opportunities for customers "outside the continental United States". While some online stores do offer free shipping on orders to Puerto Rico, many merchants exclude Hawaii, Alaska, Puerto Rico and other U.S. territories. In 2024, the household median income was $27,213, compared to US median household income of $81,604. 37.3% of the population is below the national poverty line. In 2011, median home value in Puerto Rico ranged from U.S.$100,000 to U.S.$214,000, while the national median home value was $119,600. The Merchant Marine Act of 1920 prevents foreign-flagged ships from carrying cargo between two American ports, a practice known as cabotage. Foreign ships inbound with goods from Central and South America, Western Europe, and Africa cannot stop in Puerto Rico, offload Puerto Rico-bound goods, load mainland-bound Puerto Rico-manufactured goods, and continue to U.S. ports. Instead, they must proceed directly to U.S. ports, where distributors break bulk and send Puerto Rico-bound manufactured goods to Puerto Rico across the ocean by U.S.-flagged ships. A 2018 study by economists at Boston-based Reeve & Associates and Puerto Rico-based Estudios Tecnicos has concluded that the 1920 Jones Act has no impact on either retail prices or the cost of living on Puerto Rico. Transportation Roads, freeways, expressways, and highways are maintained by the Highways and Transportation Authority under the jurisdiction of the U.S. Department of Transportation, and patrolled by the Puerto Rico Police Department. The San Juan metropolitan area is served by a public bus transit system and a metro system called ('Urban Train'). Other public transport include seaborne ferries and (private mini buses). There are three international airports, the Luis Muñoz Marín International Airport in Carolina, Mercedita International Airport in Ponce, and the Rafael Hernández Airport in Aguadilla, and 27 local airports. The Luis Muñoz Marín International Airport is the largest aerial transportation hub in the Caribbean. Puerto Rico has nine ports. The San Juan Port is the largest in Puerto Rico, and the busiest port in the Caribbean and the 10th busiest in the United States in terms of commercial activity and cargo movement, respectively. Utilities Electricity The Puerto Rico Electric Power Authority (PREPA, )—is an electric power company and the government-owned corporation of Puerto Rico responsible for electricity generation, power transmission, and power distribution in Puerto Rico. PREPA was, by law, the only entity authorized to conduct such business in Puerto Rico, effectively making it a government monopoly until 2018. PREPA is ruled by a governing board appointed by the governor with the advice and consent of the Senate of Puerto Rico, and is run by an executive director. On July 20, 2018, Puerto Rico Law 120-2018 () was signed. This law authorized PREPA to sell infrastructure and services to other providers. As a result, a contract was signed on June 22, 2020, making LUMA Energy the operator of the energy distribution and transmission infrastructure, as well as other areas of PREPA's operations, in effect partially privatizing the Puerto Rican power grid. The takeover was set for June 1, 2021, amidst protests and uncertainty from the point of view of the general public and the former-PREPA workers and union members. Water and sewage Similarly, the Puerto Rico Aqueducts and Sewers Authority (PRASA, )—is a water company and the government-owned corporation responsible for water quality, management, and supply. It is the only entity authorized to conduct such business in Puerto Rico, effectively making it a government monopoly. Its existence is designated by Law No. 40 of May 1, 1945, including the corresponding amendments. Telecommunications Telecommunications in Puerto Rico includes radio, television, fixed and mobile telephones, and the Internet. Broadcasting in Puerto Rico is regulated by the U.S. Federal Communications Commission (FCC). , there were 30 TV stations, 125 radio stations and roughly 1 million TV sets on the island. Cable TV subscription services are available, and the U.S. Armed Forces Radio and Television Service also broadcast on the island. Puerto Rico also has its own amateur radio prefixes, which differ from those of the contiguous United States in that there are two letter before the number. The most well-known prefix is KP4, but others separated for use on the archipelago (including Desecheo and Mona) are: KP3/KP4/NP3/NP4/WP3/WP4 (Puerto Rico, Vieques and Culebra) and KP5/NP5/WP5 (Desecheo Island). Amateur radio operators (also known as ham radio operators) are a well-known group in the island and can obtain special vehicle license plates with their callsign on them. They have been a key element in disaster relief. ==Demographics==

{{US Census population