As Puerto Rico emerges from a drawn-out bankruptcy process, a federal control board that oversees the island’s finances announced that it will focus on growing the U.S. territory’s economy, the Associated Press reported. The board’s new executive director, former New York state budget director Robert Mujica, unveiled a new fiscal plan that will serve as the island’s economic blueprint for the near future. It demands that Puerto Rico overhaul its education, tax and infrastructure sectors and attract more investors by strengthening its fragile power grid and making it easier to do business on an island known for its clunky bureaucracy. In recent years, the U.S. government allocated more than $120 billion to help Puerto Rico offset the impact of the pandemic and natural disasters ranging from earthquakes to major hurricanes. But Mujica noted those were “one-time infusions that temporarily boosted output” and fueled economic recovery. The island’s real GNP is declining, and economic growth is slowing as those funds evaporate, he added. High inflation — plus a shrinking and aging population — also have contributed to the economic decline, the board noted.
