Puerto Rico's economy to grow 2.8% and 1.4% for fiscal years 2024 and 2025

San Juan, March 18 (EFE).- Puerto Rico's economy expects growth of 2.8 and 1.4% in the 2024 and 2025 fiscal years, the head of the Local Planning Board (JP) said this Monday.Julio Los Ruiz.

“The projections are based on, among other variables, a slowdown in inflation and an increase in the supply of federal funds,” Los Ruiz said in a statement.

Key variables in the projections include funding for the island's recovery from hurricanes and earthquakes, significant reductions in inflation and loans for work and dependent children.

For this reason, JP pointed out that economic growth of 2.8% for FY 2024 will be mainly due to Social Development Block Grant (CDPG) funding for reconstruction.

These federal disbursements are expected to grow 21.2% this fiscal year, reaching $1,850 million, about $326 million more than in fiscal year 2023.

Additionally, a significant reduction in inflation is expected to be 2%, after increasing by 3.3% in the previous fiscal year.

Meanwhile, the 1.4% projection for fiscal year 2025 is supported by an increase in federal disbursements in CDBG funds, totaling $2,054 million, JP added.

This would represent an increase of 10.6% or $196 million ahead of fiscal year 2024.

Another indicator contributing to growth in fiscal 2025 is lower inflation by 1.4% over fiscal 2024, the agency said.

On the other hand, Puerto Rico's economy, measured by gross output at constant prices, grew by 0.7% in fiscal 2023 compared to fiscal 2022, JP said.

This growth is mainly due to exports of goods and services at 12.7%, imports of goods and services at 5.6%, personal consumption expenditures at 3.2%, gross domestic fixed capital investment at 2.8% and government consumption expenditures at 0.3%, detailed Lassús Ruiz.

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“We continue to make analysis and forecasts of the economy accessible to government, the private sector and citizens. “We focus on the variables that can affect our forecasts to always provide the most up-to-date and reliable information about Puerto Rico's economy,” he concluded.

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