Puerto Rico does not foresee major economic problems

On October 10, 2008, Primera Hora carried an Associated Press interview at La Fortaleza in which Governor Aníbal Acevedo Vilá expressed optimism that the U.S. crisis would not hit the already deteriorated local economy with the same force.

He cited that in 2008 the U.S. economy had lost about 750,000 jobs versus about 20,000 in Puerto Rico, and held that the housing crisis and banking system on the Island were less deep than on the mainland, in part because of local regulations layered on federal ones. He also noted a possible positive effect: lower oil prices, given fuel’s weight in electric generation.

On the electoral plane — seeking reelection against Luis Fortuño (PNP) — he proposed eliminating the 4.5% state Sales and Use Tax (IVU) and cutting tax rates to “put money in the pocket” of consumers. He recalled the $25,000 housing tax credit, which he said helped sell about 8,000 of nearly 15,000 available units. He said he did not foresee a halt to already authorized bond issues and that the Government Development Bank was acting with prudence.

The note mentions the 24 federal counts for alleged corruption in prior campaign financing: indictment ≠ conviction. Executive optimism and cited figures ≠ independent official forecast or guarantee that the local recession would stay contained. Primary: Primera Hora 2008-10-10 (archive).

Source: Primera Hora. https://www.primerahora.com/noticias/gobierno-politica/notas/puerto-rico-no-preve-mayores-problemas-economicos/