If you believe the major media, Puerto Rico has little hope of rebounding from its current economic crisis and resembles an impoverished, third world country with empty supermarket shelves and a shortfall of electricity.
The country faces a $70 billion debt, and it has skipped making its most recent debt payments, despite increasing taxes and cutting public services. Last month, Puerto Rico suspended about $2 billion in debt payments that it was supposed to make.
But based on a week on the island, and conversations with credible business people, the situation may be better than is being portrayed. The historic capital of San Juan was humming with tourist activity, cruise ships were coming and going and the supermarket shelves were full with many products priced lower than they are in the U.S. mainland. Moreover, the people in San Juan were optimistic and they said that the Commonwealth's economic problems stemmed from a government that needs reform, not deep-rooted problems in the private sector.
To be sure, recent 2% declines in Puerto Rico's economic activity indexes and an exodus of people from the island are concerning. The U.S. Commonwealth has lost 10% of its population over the past decade, including many skilled professionals who have moved to the mainland. For example, Puerto Rico saw more than a doctor a day move away from 2014 through 2015. The outflow of people also costs the people a good-sized part of its tax base.
Still, there was a positive feel throughout San Juan.
A local Wal-Mart was buzzing with teenagers, families and single adults. The mood was happy and jovial. No one looked in despair.
