Puerto Rico's Economy

Puerto Rico is considered a commonwealth of the United States. This means it has its own government and does not take part in the democratic process of the United States. With few natural resources, the Puerto Rican economy is largely dependent on tax incentives and duty-free trade with the United States.

Relationship With United States

The United States and Puerto Rico have a "free trade" agreement that is somewhat like colonialism except that it is designed to benefit the economies of both parties. Puerto Rico relies on U.S. federal aid and tax incentives. Puerto Rico's currency is the U.S. dollar.

Puerto Rico's Industries

The major industries in Puerto Rico include pharmaceuticals, electronics, processed foods, petrochemicals and textiles.

Agriculture

Sugar cane used to be the primary lucrative crop for Puerto Rico, but it has been replaced by livestock raising, along with pineapples, plantains, bananas and coffee.

Puerto Ricans' Economic Situation

As of mid-2009, the average income per family in Puerto Rico is $27,017. The poverty level is considered between $14,000 and $16,000. The average hourly wage for Puerto Rican workers is $8.08, and 44 percent of the population lives below the poverty line.

Exports

Puerto Rico exports a variety of products including rum, beverage concentrates, medical equipment, canned tuna and chemicals.

References

• Official Puerto Rico Website
• Puerto Rico's Economy
• Imports and Exports