PUERTO RICO Trends and Developments Contributed by: Amanda Billoch-Vázquez, Antonio Pietrantoni, Manuel del Valle and Iván Marrero, Pietrantoni Mendez & Alvarez LLC
An Introduction to Investing in Puerto Rico Puerto Rico is an unincorporated US territory that consists of several islands (collectively, the “Island”) located in the Caribbean. It has a unique economic, legal and political landscape that combines US federal jurisdiction and US influence with a distinct Spanish- speaking culture and other local factors. Historically, the Island’s status as a territory of the USA, rather than a state, has had implications for its economy and governance. During the 20th century, the US federal government implemented policies that facilitated the Island’s transition from an agrarian to an industrial econo - my, focusing on attracting US mainland investment through federal tax incentives. The industrialisation process led to the rise of various industries, includ - ing pharmaceuticals, electronics, textiles and pet - rochemicals. However, according to data published by the Puerto Rico Planning Board, and in line with broader global economic trends, the service sector has grown to become an important economic driver, with tourism, finance, real estate, retail and wholesale commerce, and professional services contributing a significant portion of Puerto Rico’s GDP. Nevertheless, Puerto Rico still faces a myriad of eco - nomic challenges that plague its economy with sig - nificant levels of uncertainty, particularly as a result of ongoing fiscal and demographic challenges and natural disasters. Despite these challenges, notable developments and emerging trends in recent years are shedding light on the current state of Puerto Rico’s economy, hinting at a potential turning point and a path towards a brighter future. Post-PROMESA outlook As of November 2025, the debt obligations of the central government of Puerto Rico and many of its instrumentalities have been restructured under the debt restructuring processes established by the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA), a federal law that, among other things, provides a framework allowing Puerto Rico’s central government and instrumentalities to file for bankruptcy relief based on the existing US Bank - ruptcy Code.
The Puerto Rico Electric Power Authority (PREPA) is the Island’s electric utility and remains the largest public sector debtor still undergoing a restructuring process; the ending of PREPA’s bankruptcy is con - sidered by many to be a key gating item to Puerto Rico’s economic success. The restructuring is cur - rently expected to reach its conclusion in 2026, mark - ing the end of the last outstanding PROMESA bank - ruptcy. With this resolution, Puerto Rico anticipates entering a new phase of post-bankruptcy economic management and infrastructure investment, although successful execution will require sustained collabora - tion among stakeholders to ensure long-term utility solvency and system modernisation. In any case, given the decreased public sector debt burden across the board, Puerto Rico’s govern - ment should be able to allocate capital resources for improvements to essential services, infrastructure capital improvements and economic development. Puerto Rico has an opportunity to advance fiscal plans and budgets that are sustainable and reflect the Island’s economic realities, while also pursuing strategies aimed to stimulate recovery, attract pri - vate investment and create conditions for long-term growth. These efforts, if effectively implemented, will help strengthen confidence in the market and position Puerto Rico as a more competitive environment for future capital deployment. The transformation of Puerto Rico’s electric power system Puerto Rico’s electric power system has long been a source of concern due to its vulnerability to natural disasters, outdated infrastructure and heavy reliance on fossil fuels. The devastation caused by Hurricanes Irma and Maria in 2017 highlighted the urgent need for grid modernisation. Under Governor Jenniffer González-Colón’s admin - istration, a state of energy emergency has been expanded, with a direct policy focus on rapidly add - ing new and flexible generation resources – including through expedited procurement of both thermal and renewable generation – as well as modernising and reconstructing the power grid to improve reliability and resilience. Key executive orders have prioritised fast-tracking large-scale energy projects and the
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