Overview
Despite its relatively small geographical area and limited availability of natural resources, Puerto Rico's productivity is exceptionally high. It has the highest nominal GDP per capita in Latin America, amounting to $26,588 in 2011. Also, Puerto Rico has the second most competitive economy among Ibero-American states, surpassed only by Chile, according to the latest World Economic Forum's Global Competitiveness Report. The commonwealth has modern infrastructure, a large public sector and an institutional framework guided by the regulations of U.S. federal agencies, most of which have an active and continued presence in the archipelago.
The financial sector is of great prominence, accounting for 5.75% of its Gross National Product (GNP) in 2010, and, similar to any other state of the union, it's also fully integrated into the U.S. financial system, governed under federal regulations, being a constituent part of the jurisdiction of the Federal Reserve Bank of New York, responsible for implementing monetary policy enacted by members of the Federal Reserve Board in Washington, D.C. throughout the United States.
During fiscal year (FY-2012), the Consolidated Budget for the archipelago, including both direct transfers from federal programs (Social Security and Medicare benefits for workers, Veteran's benefits, Pell Grants and student loan's interest subsidies and miscellaneous temporary appropriations -e.g. American Recovery and Reinvestment Act of 2009 grants totalling $2.6 billion-) represented more than $28.7 billion, or approximately 30% of its GDP, while revenues surpassed $31 billion. In 2010, federal transfers amounted $16.710 billion, while the Commonwealth's government managed funds of $10.12 billion.
As result of the recent reduction of Spain's credit rating, Puerto Rico holds the second highest credit rating awarded by the agency to a Spanish speaking territory in the long term (BBB+, Stable ).
Read more about this topic: Economy Of Puerto Rico