Economic news out of Ponce, Puerto Rico and surrounding communities shows mixed signs of both economic stress and growth in recent months.
On the one hand, local bankruptcies are up in some industries and islanders are spending less on goods and services in the wake of high energy and food prices. But other industries demonstrate growth and strength, particularly public and private investment in infrastructure and construction projects. Infrastructure development continues to be on the rise, an overall promising sign for Ponce, Puerto Rico, an important city in a region also known as Porta Caribe.
First the Bad News
Overall, across Puerto Rico personal and corporate bankruptcies are up about 5 percent in the past year. According to local news reports, particularly hard hit have been prepared food establishments, such as restaurants and cafeterias, as well as a few construction contractors and agricultural and fishing enterprises.
Contributing to the woes of these businesses is the island's ongoing recession and negative annual growth. Small family retail enterprises also find themselves in competition with mega stores, such as Walmart, whose aggressive low prices puts the squeeze on small businesses everywhere.
Positive Economic News
At the same time, exports still outpace imports on the island, according to recent data from the Puerto Rico Planning Board. In March of 2008, exports registered $5.3 billion and imports $3.7 billion.
Construction permits were also up by $71.9 million in April, with a total value of construction permit that month of $209-plus million. The value of private construction permits on the island showed a 44.9% rise over April 2007 numbers, totaling $162.8 million. Public investment also saw a $21.5 million increate to $47 million in April 2008, compared to April of 2007.
Signs of economic investment abound in south Puerto Rico, an area also known as Porta Caribe. Ponce's Historic District experienced a population growth of about 5,000 people in 2006, according to Ponce Mayor Francisco Zayas Seijo, a direct result of tax incentives for construction development in the city center.
On an ordinary day, a simple walk or drive through the city of Ponce shows construction projects on many blocks. According to city officials 120 new developments are slated to begin during the second half of 2008, including the creation of another 681 housing units.
A major public works project in South Puerto Rico is the controversial $74 million "Gasoducto," a 42-mile pipeline of 20-inch diameter steel. The natural gas pipeline, slated to be completed at the end of 2008, will run from the Ecoelectrica station in Peñuela to Salinas, Puerto Rico, where it will be used to generate electricity in the Puerto Rico Power Authority's generation plant.
The project is estimated to have a 20-year benefit and almost immediately help to reduce the cost of energy production.
With such a mixture of economic news, many business people are optimistic about the future of the South Puerto Rico economy, which appears to be preparing for its next boom.
Get the latest news and promotions from Ponce and the entire South Coast of Puerto Rico. Just subscribe to our free newsletter.
Join the 1000s of tourists, business people, and real estate investors who
get free practical know-how and insider's tips about South Puerto Rico each month.
(1 reviews)
Signs of economic investment abound in south Puerto Rico, an area also known as Porta Caribe. Ponce's Historic District experienced a population growth of about 5,000 people in 2006, according to Ponce Mayor Francisco Zayas Seijo, a direct result of tax incentives for construction development in the city center. 
