Puerto Rico among the worst in declining economies, says World Bank

CARIBBEAN BUSINESS October 27, 2008 By CB Online Staff Island placed alongside war-torn and politically unstable nations as examples of declining economies The Palestinian territories, Zimbabwe, Chad, Puerto Rico… what do these areas have in common? According to the latest report by the World Bank, an internationally supported bank that provides financial assistance to developing countries, they are all at rock bottom when it comes to economic development. A recently released report titled World Development Indicators 2008, which measures various nations’ economies during 2007, placed Puerto Rico in the 211th position out of 215 nations in terms of economic growth, making Puerto Rico’s economic decline roughly equivalent to that of war-torn, politically unstable nations. The island’s poor development during 2007 is attributed in the report to “problems in the economy due to lack of investment, scarcity of cash flow and the migration of able workers.” Joining Puerto Rico in the bottom tier of nations is Montserrat, which was rocked by a volcanic eruption in the 90s that left two-thirds of the island uninhabitable, and Fiji, which recently experienced a coup d’état and is now politically unstable. Zimbabwe, meanwhile, has “an irresponsible leadership and a level of hyperinflation ranging from 2,000% to 25,000%,” while the Palestinian territories are one of the most war-ravaged regions in the world. In contrast to Puerto Rico, nearby nations and territories with positive economic growth during 2007 include Anguila, Panama, Dominican Republic, Honduras, Perú, St. Kitts and Nevis, Argentina, Venezuela, Uruguay and Colombia. Among the nations with the fastest-growing economy worldwide are Azerbaijan, East Timor, Armenia, Georgia and the People’s Republic of China.