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Puerto Rico Says Economy to Contract for Fifth Straight Year

  • Planning Board estimates a 2 percent drop in fiscal 2017
  • Island economy projected to shrink by 16.5 percent since 2007
Updated on

Puerto Rico’s economic recession is poised to worsen as residents continue to leave the island, threatening to deepen the fiscal crisis that’s pushing the island to default on a growing share of its $70 billion of debt.

The Planning Board, which calculates the island’s economic growth, released its fiscal 2017 forecast, estimating a 2 percent drop in gross national product for the fiscal year beginning July 1. The commonwealth agency revised its forecast for the fiscal year ending June 30 to a 1.2 percent drop. The earlier estimate was for a 1.3 percent decline.