Economic Overview & Business Opportunities
The island of Puerto Rico is a magnificent Caribbean country in the West Indies with a population of 3.2 million. It is an archipelago with sea borders consisting of the Caribbean Sea and the North Atlantic Ocean. Its regions are diverse and include a rainforest, a desert, mountain ranges, and coastal plans.
Following years of Spanish rule, Puerto Rico is now a self-governing US Commonwealth country. As an unincorporated territory, it receives federal funding, and its residents are US citizens without presidential voting rights. Puerto Rico also enjoys a reasonable degree of political autonomy in local matters.
Puerto Rico’s 2006 recession hit hard, but the country is now experiencing tremendous growth and expansion. A solid mix of pro-business policies, strong governance, emerging development prospects, and a competitive tax regime boosts investment. This creates the ideal ecosystem for savvy entrepreneurs to capitalise on business opportunities in Puerto Rico.
The Economy of Puerto Rico
The World Bank and the World Economic Forum consider Puerto Rico to have a high-income and competitive economy. Its 2022 forecast gross domestic product (GDP) is USD109.2 billion, with imports and exports at USD1.94 Billion and USD1.87 billion.
Manufacturing forms the backbone of the economy and includes the production of textiles and pharmaceuticals. It is a capital-and-knowledge-intensive industry that includes chemicals, electronics, machinery, and biotechnology. The service industry remains strong, with real estate, tourism, finance leading, and research and development and entrepreneurship following suit. Agriculture is less than 1% of the GDP, with coffee and sugarcane leading in the exports category.
For investors and entrepreneurs, business opportunities in Puerto Rico can be challenging but highly rewarding. The country’s shift from an agricultural-based economy to an industrial one continues to herald tremendous change. It is transitioning towards a thriving, modern country with an economy gearing towards globalisation and innovation.
Why Invest in Puerto Rico
Business opportunities in Puerto Rico beckon investors and entrepreneurs with a world of prospects. An abundance of natural resources, as well as underinvestment, now open up the island to sustainable development. Puerto Rico’s industries are ready for investment and growth with a skills-capable and multitalented workforce.
The country’s tax regime, i.e., the Puerto Rico Incentives Code 2019 (Act 60), also extends unbeatable tariffs and incentives. Act 60 is an initiative by the Government to attract strong and diverse investment. It aims to strengthen the economy, enhance job creation, and foster collaborations and innovation. The Act offers individual and corporate tax rates between zero and 4% on certain types of incomes and activities.
Falling firmly within US jurisdiction, Puerto Rico enjoys unique market access, security, and stability that will inspire investor confidence. Its infrastructure is developing rapidly, making the island a natural choice to access other international business hubs. The diversity in sectors also means that entrepreneurs will have many industries to choose from, including financial services, tourism, technology, etc. Overall, Puerto Rico is positioning itself as an entrepreneur’s destination of choice in Latin America and the Caribbean.
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