Puerto Rico, with a population of 3,221,789, is ranked 129th in population size, just behind Bosnia and Herzegovina. Located in the Caribbean, it covers a total area of 8,870 square kilometers, ranking 155th in size, just below Cyprus.
Puerto Rico’s economic position in 2022 is marked by a GDP of $113.43 billion, ranking 63rd globally. It falls just behind the Dominican Republic, which has a GDP of $113.54 billion. The GDP per capita for Puerto Rico in 2022 is $35,208.64, placing it at the 30th position worldwide.
It is slightly behind France, with a GDP per capita of $40,886.25. Despite facing challenges, Puerto Rico’s economy shows resilience and potential for growth in the coming years.
What are the economic activities of Puerto Rico?
- Primary activities: 0.8% of GDP.
- Secondary activities: 50.1% of GDP.
- Tertiary activities: 49.1% of GDP.
Primary Sector of Puerto Rico
The primary sector in Puerto Rico, particularly its agricultural activities, thrives due to its tropical climate and rich natural resources. With 19.04% of the land dedicated to agriculture, the country produces a diverse range of products including milk, plantains, bananas, chicken, tomatoes, mangoes/guavas, eggs, oranges, pumpkins/squash, and papayas.
Despite contributing only 0.8% to the GDP, agriculture plays a crucial role in sustaining local livelihoods and food security. The variety of crops and animal products highlights the sector’s significance, showcasing the country’s agricultural potential and cultural heritage.
The country boasts a diverse geological landscape, enabling the availability of natural resources like copper, nickel, and potential for oil extraction both onshore and offshore. These resources play a vital role in the economy, supporting industries and driving economic growth.
Secondary Sector of Puerto Rico
What is the secondary sector or what are secondary activities?
The secondary sector encompasses industries that transform raw materials into finished products for consumption. In Puerto Rico, the main industrial products include pharmaceuticals, electronics, apparel, and food products. These goods are manufactured for both domestic consumption and export, contributing significantly to the country’s economy.
Manufactures in Puerto Rico’s total exports in 2023 are not as significant, with a low percentage indicating a reliance on other sectors for economic growth and stability.
Tertiary sector of Puerto Rico
What is the tertiary sector or what are tertiary activities?
The tertiary sector in Puerto Rico encompasses a wide range of services where individuals provide knowledge and time to enhance productivity and meet needs. This sector includes intangible goods like advice, attention, and expertise, catering to both consumer and business-to-business needs. Key tertiary activities in Puerto Rico include healthcare and medical care, education and training, banking and finance, communication and information exchange, tourism and hospitality, and transportation and logistics. These services play a crucial role in the economy, contributing to the overall development and well-being of the country.
Specifically, Puerto Rico’s economy heavily relies on tourism, contributing significantly to its GDP. With 4,931,000 annual arrivals, surpassing its population of 1.5305 tourists per capita, popular destinations like Old San Juan and the Flamenco Beach in Culebra attract travelers from around the world, driving the island’s thriving tourism industry.
Another example of tertiary economic activity is the mobile cellular sector, which boasts nearly 3.9 million subscriptions, supporting technological growth by enhancing communication, fostering innovation, and facilitating e-commerce.
Biggest company in Puerto Rico
Which is the biggest company in Puerto Rico? The largest company is PKO Bank Polski, with a market value of 10.9 billion USD. It operates in the banking industry, which is part of the tertiary economic sector. PKO Bank Polski was founded in 1919, providing essential financial services.
International Trade of Puerto Rico
Import Activities of Puerto Rico
Puerto Rico’s high import activities, accounting for 45.41% of GDP, signify its reliance on foreign goods for economic growth and development.
Puerto Rico’s key imports include nitrogen compounds, sulfur compounds, refined petroleum, medical cultures/vaccines, and cars. Its main import partners in 2019 were Ireland (38%), Singapore (9%), Switzerland (8%), and South Korea (5%). These imports play a crucial role in sustaining various sectors of the country’s economy.
Exports Activities of Puerto Rico
Puerto Rico’s total exports in 2023 amounted to $59,787,000,023.26, representing 52.71% of its GDP. With export activities playing a crucial role, this high percentage underscores their significant contribution to the country’s economic growth and stability.
Puerto Rico’s export activities in 2019 included packaged medicines, medical cultures/vaccines, hormones, orthopedic and medical appliances, and sulfur compounds. The country’s top export partners were Italy, the Netherlands, Belgium, Japan, Germany, Austria, Spain, and China, with Italy and the Netherlands each accounting for 15% of total exports.
Puerto Rico economy challenges in 2024
In 2024, Puerto Rico continues to face economic challenges due to the impact of COVID-19 and hurricanes. The labor force and job growth are declining, exacerbating the high poverty rates. The country heavily relies on imported energy, further straining its economy. The capital-based industries and tourism sector struggle to recover, highlighting the need for sustainable solutions to revive the economy.
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