World Economy

Puerto Rico's economic activity hits 20-year low

Puerto Rico's economic activity has slumped to its lowest level in two decades, according to an index released by the commonwealth's Government Development Bank (GDB), which also showed a sharp drop in electric power generation and cement sales.

The bank's economic activity index fell 1.1 percent in August year-over-year, putting the headline index at the lowest level since 1994.

A power station of Puerto Rico Electric Power Authority, in San Juan.
Ana Martinez | Reuters

Electric power generation for August fell 4.1 percent while cement sales slumped 22.4 percent. A turnaround expert was recently appointed at the island's power authority PREPA, whose debt troubles are indicative of the wider stress threatening the U.S. territory.

Read More

However, the index showed that private employment grew for the sixth month, up 0.4 percent on an annual basis.