Beachfront Properties & Real Estate In Puerto Rico

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Puerto Ricans often call the island Borinquen, from Borikén, its indigenous Taíno name. The terms boricua and borincano derive from Borikén and Borinquen respectively, and are commonly used to identify someone of Puerto Rican heritage. The island is also popularly known as "La Isla del Encanto", which translated means "The Island of Enchantment."

History

Pre-Columbian era

The history of the archipelago of Puerto Rico before the arrival of Christopher Columbus is not well known. What is known today comes from archaeological findings and early Spanish accounts. The first comprehensive book on the history of Puerto Rico was written by Fray Iñigo Abbad y Lasierra in 1786, 293 years after the first Spaniards arrived on the island.

The first settlers were the Ortoiroid people, an Archaic Period culture of Amerindian hunters and fishermen. An archaeological dig in the island of Vieques in 1990 found the remains of what is believed to be an Arcaico (Archaic) man (named Puerto Ferro man) dated to around 2000 BC. Between AD 120 and 400 arrived the Igneri, a tribe from the South American Orinoco region. Between the 4th and 10th centuries, the Arcaicos and Igneri co-existed (and perhaps clashed) on the island. Between the 7th and 11th centuries the Taíno culture developed on the island, and by approximately 1000 AD had become dominant. This lasted until Christopher Columbus arrived in 1492.

Spanish colony

When Christopher Columbus arrived in Puerto Rico during his second voyage on November 19, 1493, the island was inhabited by a group of Arawak Indians known as Taínos. They called the island "Borikén" or, in Spanish, "Borinquen". Columbus named the island San Juan Bautista, in honor of Saint John the Baptist. Later the island took the name of Puerto Rico (Spanish for "Rich Port") while the capital was named San Juan. In 1508, Spanish conquistador Juan Ponce de León became the island's first governor to take office.

The Spanish soon colonized the island. Taínos were forced into slavery and were decimated by the harsh conditions of work and by diseases brought by the Spaniards. In 1511, the Taínos revolted against the Spanish; cacique Urayoán, as planned by Agüeybaná II, ordered his warriors to drown the Spanish soldier Diego Salcedo to determine whether the Spaniards were immortal. After drowning Salcedo, they kept watch over his body for three days to confirm his death. The revolt was easily crushed by Ponce de León and within a few decades much of the native population had been decimated by disease, violence, and a high occurrence of suicide. African slaves were introduced to replace the Taíno. Puerto Rico soon became an important stronghold and port for the Spanish Empire. Various forts and walls, such as La Fortaleza, El Castillo San Felipe del Morro and El Castillo de San Cristóbal, were built to protect the port of San Juan from European enemies. France, The Netherlands and England made several attempts to capture Puerto Rico but failed to wrest long-term occupancy. During the late 17th and early 18th centuries colonial emphasis was on the more prosperous mainland territories, leaving the island impoverished of settlers.

In 1809, in the midst of the Peninsular War, the Supreme Central Junta based in Cádiz recognized Puerto Rico as an overseas province of Spain with the right to send representatives to the recently convened Spanish parliament. The representative, Ramon Power y Giralt, died after serving a three-year term in the Cortes. These parliamentary and constitutional reforms, which were in force from 1810 to 1814 and again from 1820 to 1823, were reversed twice afterwards when the traditional monarchy was restored by Ferdinand VII. Nineteenth century reforms augmented the population and economy, and expanded the local character of the island. After the rapid gaining of independence by the South and Central American states in the first part of the century, Puerto Rico and Cuba became the only Spanish colonies found in the Americas. The Spanish Crown revived the Royal Decree of Graces of 1815. This time the decree was printed in three languages — Spanish, English and French — intending to attract Europeans of non-Spanish origin, with the hope that the independence movements would lose their popularity and strength with the arrival of new settlers. Free land was offered to those who wanted to populate the islands on the condition that they swear their loyalty to the Spanish Crown and allegiance to the Roman Catholic Church.

Toward the end of the 19th century, poverty and political estrangement with Spain led to a small but significant uprising in 1868 known as "Grito de Lares". It began in the rural town of Lares but was subdued when rebels moved to the neighboring town of San Sebastián. Leaders of this independence movement included Ramón Emeterio Betances, considered the "father" of the Puerto Rican independence movement, and other political figures such as Segundo Ruiz Belvis. In 1897, Luis Muñoz Rivera and others persuaded the liberal Spanish government to agree to Charters of Autonomy for Cuba and Puerto Rico. In 1898, Puerto Rico's first, but short-lived, autonomous government was organized as an 'overseas province' of Spain. The charter maintained a governor appointed by Spain, which held the power to annul any legislative decision, and a partially elected parliamentary structure. In February, Governor-General Manuel Macías inaugurated the new government under the Autonomous Charter. General elections were held in March and the autonomous government began to function on July 17, 1898.

United States colony
On July 25, 1898, during the Spanish-American War, Puerto Rico was invaded by the United States with a landing at Guánica. As an outcome of the war, Spain ceded Puerto Rico, along with Cuba, the Philippines, and Guam to the U.S. under the Treaty of Paris.

The United States and Puerto Rico thus began a long-standing relationship. Puerto Rico began the 20th century under the military rule of the U.S. with officials, including the governor, appointed by the President of the United States. The Foraker Act of 1900 gave Puerto Rico a certain amount of popular government, including a popularly-elected House of Representatives. In 1917, the Jones-Shafroth Act granted Puerto Ricans U.S. citizenship and provided for a popularly-elected Senate to complete a bicameral Legislative Assembly. As a result of their new U.S. citizenship, many Puerto Ricans were drafted into World War I and all subsequent wars with U.S. participation.

Natural disasters, including a major earthquake, a tsunami and several hurricanes, and the Great Depression impoverished the island during the first few decades under American rule. Some political leaders, like Pedro Albizu Campos who led the Puerto Rican Nationalist Party, demanded change. On October 30, 1950, Albizu-Campos and other nationalists led a 3-day revolt (known as The Jayuya Uprising) against the United States in the town of Jayuya. The United States declared martial law and attacked Jayuya with infantry, artillery and bombers. On November 1, 1950, Puerto Rican nationalists Griselio Torresola and Oscar Collazo attempted to assassinate President Harry S Truman. Torresola was killed during the attack, but Collazo was captured. Collazo served 29 years in a federal prison, being released in 1979. Don Pedro Albizu Campos also served many years in a federal prison in Atlanta, Georgia, for seditious conspiracy to overthrow the U.S. government in Puerto Rico.

The internal governance changed during the latter years of the Roosevelt–Truman administrations, as a form of compromise led by Muñoz Marín and others. It culminated with the appointment by President Truman in 1946 of the first Puerto Rican-born governor, Jesús T. Piñero.

Commonwealth
In 1947, the U.S. granted Puerto Ricans the right to democratically elect their own governor. Luis Muñoz Marín was elected during the 1948 general elections, becoming the first popularly-elected governor of Puerto Rico. In 1950, the Truman Administration allowed for a democratic referendum in Puerto Rico to determine whether Puerto Ricans desired to draft their own local constitution. A local constitution was approved by a Constitutional Convention on February 6, 1952, ratified by the U.S. Congress, approved by President Truman on July 3 of that year, and proclaimed by Gov. Muñoz Marín on July 25, 1952, the anniversary of the 1898 arrival of U.S. troops. Puerto Rico adopted the name of Estado Libre Asociado (literally translated as "Free Associated State"), officially translated into English as Commonwealth, for its body politic.

During the 1950s Puerto Rico experienced rapid industrialization, due in large part to Operación Manos a la Obra ("Operation Bootstrap"), an offshoot of FDR's New Deal, which aimed to transform Puerto Rico's economy from agriculture-based to manufacturing-based. Presently, Puerto Rico has become a major tourist destination and a leading pharmaceutical and manufacturing center.Yet it still struggles to define its political status. Three plebiscites have been held in recent decades to resolve the political status but no changes have been attained. Support for the pro-statehood party, Partido Nuevo Progresista (PNP) and the pro-commonwealth party, Partido Popular Democrático (PPD) remains about equal. The only registered pro-independence party, the Partido Independentista Puertorriqueño (PIP), usually receives 3-5% of the electoral votes.

On October 25, 2006, the State Department of Puerto Rico conferred Puerto Rican citizenship to Juan Mari Brás. The Supreme Court of Puerto Rico and the Puerto Rican Secretary of Justice determined that Puerto Rican citizenship exists and was recognized in the Constitution of Puerto Rico. Since the summer of 2007, the Puerto Rico State Department has developed the protocol to grant Puerto Rican citizenship to Puerto Ricans

Government and politics
Puerto Rico has a republican form of government, subject to U.S. jurisdiction and sovereignty. Its current powers are all delegated by the United States Congress and lack full protection under the United States Constitution. Puerto Rico's head of state is the President of the United States. The government of Puerto Rico, based on the formal republican system, is composed of three branches: executive, legislative, and judicial. The executive branch is headed by the Governor, currently Mr. Luis Fortuño. The legislative branch consists of a bicameral Legislative Assembly made up of a Senate upper chamber and a House of Representatives lower chamber. The Senate is headed by the President of the Senate, while the House of Representatives is headed by the Speaker of the House. The judicial branch is headed by the Chief Justice of the Puerto Rico Supreme Court. The legal system is a mix of the civil law and the common law systems. The governor and legislators are elected by popular vote every four years. Members of the Judicial branch are appointed by the governor with the "advice and consent" of the Senate.

Puerto Rico is represented in the United States Congress by a nonvoting delegate, formally called a Resident Commissioner (currently Pedro Pierluisi). Current legistation has returned the Commissioner's power to vote in the Committee of the Whole, but not on matters where the vote would represent a decisive participation. Puerto Rican elections are governed by the Federal Election Commission. While residing in Puerto Rico, Puerto Ricans cannot vote in U.S. presidential elections, but they can vote in primaries. Puerto Ricans who become residents of a U.S. state can vote in presidential elections.

As Puerto Rico is not an independent country, it hosts no embassies. It is host, however, to consulates from 41 countries, mainly from the Americas and Europe. Most consulates are located in San Juan. The Holy See has designated the Papal Nuncio in the Dominican Republic as the ecclesiastical liaison to the Roman Catholic Church in Puerto Rico.

As an unincorporated territory of the United States, Puerto Rico does not have any first-order administrative divisions as defined by the U.S. government, but has 78 municipalities at the second level. Mona Island is not a municipality, but part of the municipality of Mayagüez. Municipalities are subdivided into wards or barrios, and those into sectors. Each municipality has a mayor and a municipal legislature elected for a four year term. The municipality of San Juan (previously called "town"), was founded first, in 1521, San Germán in 1570, Coamo in 1579, Arecibo in 1614, Aguada in 1692 and Ponce in 1692. An increase of settlement saw the founding of 30 municipalities in the 18th century and 34 in the 19th. Six were founded in the 20th century; the last was Florida in 1971.

From 1952 to present, Puerto Rico has had three political parties which stand for three distinct future political scenarios. The Popular Democratic Party (PPD) seeks to maintain the island's "association" status as a commonwealth, improved commonwealth and/or seek a true free sovereign-association status or Free Associated Republic, and has won a plurality vote in referendums on the island's status held over six decades after the island was invaded by the U.S. The New Progressive Party (PNP) seeks statehood. The Puerto Rican Independence Party seeks independence. In 2007, a fourth party, Puerto Ricans for Puerto Rico Party (PPR), was ratified. The PPR's claims that it seeks to address the islands' problems from a status-neutral platform. Non-registered parties include the Puerto Rican Nationalist Party, the Socialist Workers Movement, the Hostosian National Independence Movement, and others.

Political status
People born in Puerto Rico are U.S. citizens. As such, they are entitled to vote at the federal level, but not from the island, as the territory is not yet incorporated. The legal restriction to vote at the federal level extends only to the territory, not to its citizens. In this fashion, all U.S. citizens can vote at the federal level from any part of the world or incorporated territories of the U.S. By the same token, no U.S. citizen may vote at the federal level if they reside in Puerto Rico, although they can vote at the "state" (local) level. Most Federal level taxes do not apply to island residents, as taxation is one of the powers delegated to the local authorities. See also: Voting rights in Puerto Rico

Puerto Rico has been under U.S. sovereignty for over a century and Puerto Ricans have been U.S. citizens since 1917. Puerto Rico is an "unincorporated territory" of the United States which according to the U.S. Supreme Court's Insular Cases is "a territory appurtenant and belonging to the United States, but not a part of the United States." Puerto Rico is subject to the Congress’ plenary powers under the territorial clause of Article IV, sec. 3, of the U.S. Constitution. U.S. federal law applies to Puerto Rico, even though Puerto Rico is not a state of the American Union and has no voting representative in the U.S. Congress. Due to the establishment of the Federal Relations Act of 1950, all federal laws that are "not locally inapplicable" are automatically the law of the land in Puerto Rico.

All persons born in Puerto Rico after 1941 are considered natural-born citizens of the United States, one of the constitutional requirements to be President of the United States.

Estado Libre Asociado
In 1950, the U.S. Congress granted Puerto Ricans the right to organize a constitutional convention via a referendum that gave them the option of voting their preference, "yes" or "no", on a proposed U.S. law that would organize Puerto Rico as a "commonwealth" that would suppose continued United States sovereignty over Puerto Rico and its people. Puerto Rico's electorate expressed its support for this measure in 1951 with a second referendum to ratify the constitution. The Constitution of Puerto Rico was formally adopted on July 3, 1952. The Constitutional Convention specified the name by which the body politic would be known. On February 4, 1952, the convention approved Resolution 22 which chose in English the word "Commonwealth", meaning a "politically organized community" or "state", which is simultaneously connected by a compact or treaty to another political system. The convention adopted a translation into Spanish of the term, inspired by the Irish Free State (Saorstát Éireann) of "Estado Libre Asociado" (ELA) to represent the agreement. Literally translated into English the phrase Estado Libre Asociado means "Associated Free State."

While the approval of the commonwealth constitution marked a historic change in the civil government for the islands, neither it, nor the public laws approved by Congress in 1950 and 1952, revoked statutory provisions concerning the legal relationship of Puerto Rico to the United States. This relationship is based on the Territorial Clause of the U.S. Constitution. The statutory provisions that set forth the conditions of the relationship are commonly referred to as the Federal Relations Act (FRA). While specified subsections of the FRA were "adopted in the nature of a compact," other provisions, by comparison, are excluded from the compact reference. Matters still subject to congressional authority and established pursuant to legislation include the citizenship status of residents, tax provisions, civil rights, trade and commerce, public finance, the administration of public lands controlled by the federal government, the application of federal law over navigable waters, congressional representation, and the judicial process, among others.

In 1967, the Puerto Rico's Legislative Assembly polled the political preferences of the Puerto Rican electorate by passing a plebiscite Act that provided for a vote on the status of Puerto Rico. This constituted the first plebiscite by the Legislature for a choice on three status options (commonwealth, statehood, and independence). Claiming "foul play" and dubbing the process as illegitimate and contrary to International Law norms regarding decolonization procedures, the plebiscite was boycotted by the major pro-statehood and pro-independence parties of the time, the [Republican Party of Puerto Rico] and the Puerto Rican Independence Party, respectively. The Commonwealth option, represented by the PDP, won with a majority of 60.4% of the votes. After the plebiscite, efforts in the 1970s, 1980s, 1990s and 2000s, to enact legislation to address the status issue died in U.S. Congressional committees. In subsequent plebiscites organized by Puerto Rico held in 1993 and 1998 (without any formal commitment on the part of the U.S. Government to honor the results), the current political status failed to receive majority support (receiving 48.6% in 1993 and less than one percent, 0.3%, in 1998, when the "none of the above option" received the joint vote of voters who supported "enhanced" commonwealth with sovereignty from the U.S. and some pro-independence supporters).

International status
On November 27, 1953, shortly after the establishment of the Commonwealth, the General Assembly of the United Nations approved Resolution 748, removing Puerto Rico's classification as a non-self-governing territory under article 73(e) of the Charter from UN. But the General Assembly did not apply its full list of criteria to Puerto Rico to determine if it has achieved self-governing status. According to the White House Task Force on Puerto Rico's Political Status in its December 21, 2007 report, the U.S., in its written submission to the UN in 1953, never represented that Congress could not change its relationship with Puerto Rico without the territory's consent. It stated that the U.S. Justice Department in 1959 reiterated that Congress held power over Puerto Rico pursuant to the Territorial Clause of the U.S. Constitution. In a 1996 report on a Puerto Rico status political bill, the "U.S. House Committee on Resources stated that PR's current status does not meet the criteria for any of the options for full self-government". It concluded that PR is still an unincorporated territory of the U.S. under the territorial clause, that the establishment of local self-government with the consent of the people can be unilaterally revoked by the U.S. Congress, and that U.S. Congress can also withdraw the U.S. citizenship of PR residents of PR at any time, for a legitimate Federal purpose. The application of the Constitution to Puerto Rico is limited by the Insular Cases.

Within the United States
Under the Constitution of Puerto Rico, Puerto Rico is described as a 'Commonwealth' and Puerto Ricans enjoy a degree of administrative autonomy similar to that of a U.S. state. Puerto Ricans have been granted U.S. citizenship in 1917 due to the Jones-Shafroth Act. The act was signed into law by President Woodrow Wilson on March 2, 1917. U.S. Federal law 8 U.S.C. § 1402 approved by the President Harry S. Truman on June 27, 1952 declared U.S. Citizens at birth to all persons born in Puerto Rico on or after January 13, 1941 and all persons born in Puerto Rico between April 11, 1899, and January 12, 1941, are automatically conferred citizenship, but, since Puerto Rico is an unincorporated territory and not a U.S. state, the U.S. Constitution does not enfranchise U.S. citizens residing in Puerto Rico. President George H. W. Bush issued a memorandum on November 30, 1992 to heads of executive departments and agencies establishing the current administrative relationship between the federal government and the Commonwealth of Puerto Rico. This memorandum directs all federal departments, agencies, and officials to treat Puerto Rico administratively as if it were a state, insofar as doing so would not disrupt federal programs or operations. Puerto Rico does participate in the internal political process of both the Democratic and Republican parties in the U.S., accorded equal-proportional representation in both parties, and delegates from the islands vote in each party's national convention.

Puerto Rico is classified by the U.S. government as an independent taxation authority by mutual agreement with the U.S. Congress. Contrary to common misconception, residents of Puerto Rico pay some U.S. federal taxes: import/export taxes, federal commodity taxes, social security taxes, etc. Most residents do not pay federal income tax but pay federal payroll taxes (Social Security and Medicare), and Puerto Rico income taxes. But federal employees, or those who do business with the federal government, Puerto Rico-based corporations that intend to send funds to the U.S. and others also pay federal income taxes. Because the cutoff point for income taxation is lower than that of the U.S. IRS code, and because the per-capita income in Puerto Rico is much lower than the average per-capita income on the mainland, more Puerto Rico residents pay less income taxes to the local taxation authority than if the IRS code were applied to the island. Residents are eligible for Social Security benefits upon retirement. But Puerto Rico is excluded from Supplemental Security Income (SSI) and receives less than 15% of the Medicaid funding it would be allotted as a state, while Medicare providers receive only partial state-like reimbursements for services rendered to beneficiaries in Puerto Rico (even though the latter paid fully into the system).

Puerto Ricans may enlist in the U.S. military. Since becoming statutory United States citizens in 1917, Puerto Ricans have been included in the compulsory draft whenever it has been in effect. Puerto Ricans have participated in all U.S. wars since 1898, most notably World War II, the Korean and Vietnam wars, as well as the current Middle Eastern conflicts; but the island's ultimate status still has not been determined and its 3.9 million residents still do not have voting representation in their national government.

Recent developments
The nature of Puerto Rico's political relationship with the U.S. is the subject of ongoing debate in Puerto Rico, the United States Congress, and the United Nations. In 2005 and 2007, two reports were issued by the U.S. President's Task Force on Puerto Rico's Status. Both reports conclude that Puerto Rico continues to be a territory of U.S. under the plenary powers of the U.S. Congress. Reactions from PR's two major political parties were mixed. The Popular Democratic Party (PPD) challenged the task force's report and committed to validating the current status in all international forums, including the United Nations. It also rejects any "colonial or territorial status" as a status option, and vows to keep working for the enhanced Commonwealth status that was approved by the PPD in 1998 which included sovereignty, an association based on "respect and dignity between both nations", and common citizenship. The New Progressive Party (PNP) supported the White House Report's conclusions and supported bills to provide for a democratic referendum process among Puerto Rico voters.

Geography
Puerto Rico consists of the main island of Puerto Rico and various smaller islands, including Vieques, Culebra, Mona, Desecheo, and Caja de Muertos. Of these last five, only Culebra and Vieques are inhabited year-round. Mona is uninhabited most of the year except for employees of the Puerto Rico Department of Natural Resources. There are also many other even smaller islands including Monito and "La Isleta de San Juan" which includes Old San Juan and Puerta de Tierra.

The Commonwealth of Puerto Rico has an area of 5,325 square miles (13,790 km2), of which 3,425 square miles (8,870 km2) is land and 1,900 square miles (4,900 km2) is water. The maximum length of the main island from east to west is 110 miles (180 km), and the maximum width from north to south is 40 miles (64 km). Comparing land areas, Puerto Rico is 8/10 the size of Jamaica and 8/100 the size of Cuba, the next smallest and the largest countries in the Greater Antilles, respectively. Compared to U.S. states, it is larger than Delaware and Rhode Island combined, but slightly smaller than Connecticut. The main island is mostly mountainous with large coastal areas in the north and south. The main mountain range is called "La Cordillera Central" (The Central Range). The highest elevation in Puerto Rico, Cerro de Punta (4,390 feet; 1,338 m), is located in this range. Another important peak is El Yunque, one of the highest in the Sierra de Luquillo at the El Yunque National Forest, with an elevation of 3,494 feet (1,065 m).

Puerto Rico has 17 lakes, all man-made, and more than 50 rivers, most originating in the Cordillera Central. Rivers in the northern region of the island are typically longer and of higher water flow rates than those of the south, since the south receives less rain than the central and northern regions.

Puerto Rico is composed of Cretaceous to Eocene volcanic and plutonic rocks, overlain by younger Oligocene and more recent carbonates and other sedimentary rocks. Most of the caverns and karst topography on the island occurs in the northern region in the carbonates. The oldest rocks are approximately 190 million years old (Jurassic) and are located at Sierra Bermeja in the southwest part of the island. They may represent part of the oceanic crust and are believed to come from the Pacific Ocean realm.

Puerto Rico lies at the boundary between the Caribbean and North American plates and is being deformed by the tectonic stresses caused by their interaction. These stresses may cause earthquakes and tsunamis. These seismic events, along with landslides, represent some of the most dangerous geologic hazards in the island and in the northeastern Caribbean. The most recent major earthquake occurred on October 11, 1918 and had an estimated magnitude of 7.5 on the Richter scale. It originated off the coast of Aguadilla and was accompanied by a tsunami.

The Puerto Rico Trench, the largest and deepest trench in the Atlantic, is located about 75 miles (121 km) north of Puerto Rico in the at the boundary between the Caribbean and North American plates. It is 1,090 miles (1,750 km) long and about 60 miles (97 km) wide. At its deepest point, named the Milwaukee Deep, it is 27,493 feet (8,380 m) deep, or about 5.2 miles (8.4 km).

Located in the tropics, Puerto Rico enjoys an average temperature of 82.4 °F (30 °C) throughout the year. Temperatures do not change drastically throughout the seasons. The temperature in the south is usually a few degrees higher than the north and temperatures in the central interior mountains are always cooler than the rest of the island. The Hurricane season spans from June to November. The all-time low in Puerto Rico has been 39 °F (4 °C), registered in Aibonito.

Species endemic to the archipelago are 239 plants, 16 birds and 39 amphibians/reptiles, recognized as of 1998. Most of these (234, 12 and 33 respectively) are found on the main island. The most recognizable endemic species and a symbol of Puerto Rican pride is the Coquí, a small frog easily identified by the sound of its call, and from which it gets its name. Most Coquí species (13 of 17) live in the El Yunque National Forest, a tropical rainforest in the northeast of the island previously known as the Caribbean National Forest. El Yunque is home to more than 240 plants, 26 of which are endemic to the island. It is also home to 50 bird species, including the critically endangered Puerto Rican Amazon. Across the island in the southwest, the 10,000 acres (40 km2) of dry land at the Guánica Dry Forest Reserve contain over 600 uncommon species of plants and animals, including 48 endangered species and 16 endemic to Puerto Rico.

Economy
In the early 1900s the greatest contributor to Puerto Rico's economy was agriculture and its main crop was sugar. In the late 1940s a series of projects codenamed Operation Bootstrap encouraged a significant shift to manufacture via tax exemptions. Manufacturing quickly replaced agriculture as the main industry of the island. Puerto Rico is classified as a high income country by the World Bank.

Economic conditions have improved dramatically since the Great Depression due to external investment in capital-intensive industries such as petrochemicals, pharmaceuticals and technology. Once the beneficiary of special tax treatment from the U.S. government, today local industries must compete with those in more economically depressed parts of the world where wages are not subject to U.S. minimum wage legislation. In recent years, some U.S. and foreign owned factories have moved to lower wage countries in Latin America and Asia. Puerto Rico is subject to U.S. trade laws and restrictions.

Also, starting around 1950, there was heavy migration from Puerto Rico to the Continental United States, particularly New York City, in search of better economic conditions. Puerto Rican migration to New York displayed an average yearly migration of 1,800 for the years 1930-1940, 31,000 for 1946-1950, 45,000 for 1951-1960, and a peak of 75,000 in 1953. As of 2003, the U.S. Census Bureau estimates that more people of Puerto Rican birth or ancestry live in the U.S. than in Puerto Rico.

On May 1, 2006, the Puerto Rican government faced significant shortages in cash flows, which forced the closure of the local Department of Education and 42 other government agencies. All 1,536 public schools closed, and 95,762 people were furloughed in the first-ever partial shutdown of the government in the island's history. On May 10, 2006, the budget crisis was resolved with a new tax reform agreement so that all government employees could return to work. On November 15, 2006 a 5.5% sales tax was implemented. Municipalities are required by law to apply a municipal sales tax of 1.5% bringing the total sales tax to 7%.

Tourism is an important component of Puerto Rican economy supplying an approximate $1.8 billion. In 1999, an estimated 5 million tourists visited the island, most from the U.S. Nearly a third of these are cruise ship passengers. A steady increase in hotel registrations since 1998 and the construction of new hotels and new tourism projects, such as the Puerto Rico Convention Center, indicate the current strength of the tourism industry.

Puerto Ricans had median household income of $17,741 for 2007. By comparison, the poorest state of the Union, Mississippi, had median household income of $36,338 in 2007. Puerto Rico’s public debt has grown at a faster pace than the growth of its economy, reaching $46.7 billion in 2008. In January 2009, Governor Luis Fortuño enacted several measures aimed at eliminating the government's $3.3 billion deficit. The island unemployment rate is 12% as January of 2009.