PRI Puerto Rico profile

The status as an unincorporated US territory shapes governance, representation, and policy levers. The local government operates under a constitution with executive, legislative, and judicial branches, but many key fiscal powers are constrained by federal oversight and mandates. A fiscal control board or oversight mechanism limits budget autonomy and enforces austerity measures in practice, creating tension between elected representatives and external decision makers. Debates over political status persist, with factions advocating statehood, enhanced commonwealth, or independence; policy coherence is hindered by fragmentation between island leadership and federal policy. Disaster response, infrastructure investment, and economic strategy suffer from inconsistent funding and limited long term planning.

Colonial history Colonized by Spain, then became a U.S. territory
Former colonizer Spain
Government type Unincorporated territory with civil government
Legal system Based on the U.S. legal system
Political stability Moderately stable

The economy remains dominated by services, manufacturing, and public spending, with limited diversification and sensitivity to federal policy. Manufacturing sectors such as pharmaceuticals and consumer electronics are important, but competitiveness is constrained by energy costs, regulatory uncertainty, and skilled labor shortages. Tourism provides revenue but is exposed to global shocks and seasonality; private investment is volatile due to tax policy changes and financial instability in the public sector. A pattern of outmigration and brain drain reduces human capital for growth, while social inequality and housing pressures complicate inclusive development. Public debt and austerity measures have shaped macroeconomic conditions, with growth prospects tied to reforms, energy cost reductions, and federal assistance.

Currency name United States Dollar (USD)
Economic system Mixed economy
Informal economy presence Moderate
Key industries Manufacturing (pharmaceuticals, electronics), tourism, agriculture
Trade orientation Dependent on U.S. trade; Export-oriented

Puerto Rico is an island with rich biodiversity and climate vulnerability. The geography exposes the territory to extreme weather events, surfacing resilience and adaptation challenges. Coastal erosion, freshwater resource management, and watershed protection are ongoing concerns, with environmental justice dimensions as marginalized communities bear greater risk. Deforestation and habitat loss from development have affected ecosystems, while protected areas and conservation efforts aim to balance growth with preservation. Dependence on imported fuels and vulnerability of energy infrastructure intensify climate risk.

Bordering countries None (territory of the United States)
Climate type Tropical rainforest climate
Continent North America
Environmental Issues Deforestation, waste management, pollution
Landlocked No
Natural Hazards Hurricanes, earthquakes, floods
Natural resources Copper, fish, clay, limestone, and minerals
Terrain type Mountainous interior with coastal plains

Demographic trends reflect migration to the mainland, aging, and shifting population distribution between urban cores and rural areas. Access to quality healthcare and education remains uneven, with gaps in rural neighborhoods. Crime, poverty, and housing affordability create social strain, while culture and language shape identity and social cohesion. Economic dislocation and uneven development contribute to social tension and a sense of unfairness in policy outcomes.

Cultural heritage Rich African, Taino, Spanish, and American influences
Driving side Right
Education system type Public education system, free primary and secondary education
Ethnic composition Predominantly Hispanic/Latino, African, Caucasian
Family structure Traditionally extended families; Nuclear families are common
Healthcare model Mixed public-private healthcare system
Major religions Christianity (predominantly Catholicism)
Official languages Spanish, English

Energy infrastructure dominates the narrative of modernization challenges; the electrical grid is prone to outages and relies on imports for fuel, complicating reliability and affordability. Efforts to expand renewable energy and modernize generation, transmission, and distribution face institutional, financing, and permitting hurdles. Digital connectivity varies, with gaps in broadband access and technological literacy that hinder remote work and education. Transport, ports, airports, and water and wastewater systems require capital investment and resilience planning to withstand storms and climate change. Data management, cybersecurity, and public procurement processes influence efficiency and governance.

Internet censorship level Low
Tech innovation level Moderate
Transport system type Public transport, highways, limited rail systems

Development indicators

Indicator Year Value Rank 5Y Rank Change
Political Stability and Absence of Violence/Terrorism 2023 0.51 72 -11
Regulatory Quality 2023 0.638 52 +14
Rule of Law 2023 0.494 63 +9
Unemployment, total (% of total labor force) 2022 6 45 +15
Birth rate, crude (per 1,000 people) 2023 5.8 198 -2
Death rate, crude (per 1,000 people) 2023 10.7 27 -24
Exports of goods and services (% of GDP) 2024 51.9 38 +5
GDP per capita (current US$) 2024 39,285 31 -12
GDP per capita, PPP (current international US$) 2024 50,156 43 -7
Imports of goods and services (% of GDP) 2024 42.8 65 -11
Life expectancy at birth, total (years) 2023 81.7 35 -3
Net migration 2024 11,561 44 -5
Population, total 2024 3,203,295 134 +1
Renewable energy consumption (% of total final energy consumption) 2022 2.5 54 -98
Level of water stress: freshwater withdrawal as a proportion of available freshwater resources 2021 19.5 72 +2
Total greenhouse gas emissions excluding LULUCF per capita (t CO2e/capita) 2023 5.01 89 +3
Suicide mortality rate (per 100,000 population) 2021 5.42 113 -8
Individuals using the Internet (% of population) 2022 87.3 44 -24
Control of Corruption 2023 0.0196 82 +2
Government Effectiveness 2023 -0.389 124 +20

Demography and Health

Puerto Rico’s population stood at 3,203,295 in 2024, placing the territory around the 134th position in size among handled jurisdictions. The population enjoys a high life expectancy of 81.7 years (2023), ranking 35th, which signals strong overall health outcomes and access to medical care. Yet the territory has a notably low crude birth rate of 5.8 births per 1,000 people (2023, rank 198), and a relatively high crude death rate of 10.7 deaths per 1,000 people (2023, rank 27), pointing to an aging demographic and future pressures on healthcare, pensions, and social services. Net migration in 2024 was 11,561 people (rank 44), indicating a modest movement of residents across borders but not extreme by regional standards. Unemployment was 6.0% in 2022 (rank 45), suggesting a reasonable labor market given the income level, while the suicide mortality rate was 5.42 per 100,000 population in 2021 (rank 113), a metric that highlights ongoing public-health considerations. Taken together, these indicators sketch a population with strong longevity and health infrastructure but with aging dynamics and migration patterns that will shape demand for services and housing in the years ahead.

Economy

In 2024, GDP per capita stood at 39,285 current US dollars (rank 31), underscoring a relatively high income level for a U.S. territory and reflecting a developed services-oriented economy. GDP per capita at purchasing power parity (PPP) reached 50,156 in 2024 (rank 43), suggesting strong relative living standards when cost differences are controlled. The economy shows substantial openness to trade, with exports of goods and services amounting to 51.9% of GDP in 2024 (rank 38) and imports comprising 42.8% of GDP (rank 65). This trade intensity points to a diversified, transaction-heavy economic structure likely anchored by services, manufacturing, logistics, and tourism, supported by a favorable link to the broader U.S. economy. The unemployment rate of 6.0% in 2022 indicates a relatively resilient labor market for a high-income territory, even as regional variations and sectoral shifts can influence job quality and opportunities. Overall, the data portray an economy with strong per-capita income, meaningful integration into global markets, and a workforce capable of supporting both local demand and export-oriented activities.

Trade and Investment

The trade profile of Puerto Rico shows a notable level of openness, with exports exceeding a majority of GDP compared with peer mid-income economies (51.9% of GDP in 2024) and imports accounting for 42.8% of GDP (2024). This pattern underscores the territory’s role as a gateway for goods and services within the Caribbean and to the United States, facilitated by its special status and infrastructure that support logistics, manufacturing, and services that rely on import inputs and export markets. The strong export orientation relative to GDP suggests favorable conditions for foreign and domestic investors seeking access to regional and U.S. markets, as well as potential for growth in sectors linked to tourism, finance, and business process outsourcing that can leverage Puerto Rico’s educated workforce and connectivity. A broad investment climate is implied by the high level of trade integration, though the regulatory and governance environment—based on other indicators—may shape the efficiency and predictability of investment decisions.

Governance and Institutions

Key governance indicators present a mixed picture. Political stability and absence of violence/terrorism score 0.51 in 2023 (rank 72), suggesting a relatively stable environment by global standards. Regulatory quality is moderate, at 0.638 (2023, rank 52), and the rule of law stands at 0.494 (2023, rank 63), indicating a reasonable framework for contract enforcement and regulatory consistency. However, control of corruption is very low at 0.0196 (2023, rank 82), and government effectiveness is negative at −0.389 (2023, rank 124). Taken together, these figures imply that while the territory benefits from stability and regulatory frameworks, there are notable governance weaknesses—particularly in the effectiveness of public institutions and in reducing corruption—which can affect policy implementation, public service delivery, and business confidence. The combination of these indicators points to anchor points for reform: sustaining stability while strengthening administrative capacity, transparency, and the efficiency of government services to improve the business climate and social outcomes.

Infrastructure and Technology

Puerto Rico exhibits strong digital connectivity, with 87.3% of the population using the internet in 2022 (rank 44). This level of digital penetration supports a growing digital economy, remote work possibilities, and online service delivery. On energy and the environment side, renewable energy consumption accounted for 2.5% of total final energy consumption in 2022 (rank 54), highlighting a heavy reliance on non-renewable sources and presenting an arena for energy transition and decarbonization. Environmental pressures are also reflected in water resources management: the level of water stress—freshwater withdrawal as a share of available resources—was 19.5% in 2021 (rank 72), a moderate stress level that suggests potential vulnerability under climate variability or drought. Total greenhouse gas emissions excluding LULUCF per capita stood at 5.01 t CO2e per person in 2023 (rank 89), indicating a moderate carbon footprint that could be reduced further with greater energy efficiency and renewables. Collectively, these indicators point to a technologically capable population and infrastructure base with clear opportunities to accelerate the energy transition, enhance resilience, and deepen digital services across sectors.

Environment and Sustainability

Environmental and sustainability indicators reveal both strengths and levers for improvement. Water stress remains manageable but non-trivial at 19.5% of freshwater withdrawals relative to availability (2021, rank 72). The territory’s per-capita greenhouse gas emissions are 5.01 t CO2e (2023, rank 89) when excluding LULUCF, and renewable energy accounts for only 2.5% of final energy consumption (2022, rank 54). These figures imply a dependence on conventional energy sources and significant room for decarbonization through increased renewable generation, energy efficiency, and modernization of the grid. The relatively high life expectancy and health outcomes contrast with the environmental profile, underscoring the importance of balancing development with climate resilience and sustainable resource management. As climate threats intensify in the Caribbean, expanding renewables, reducing emissions, and investing in water and energy resilience will be central to a sustainable growth path for the territory.