Puerto Rico's inflation-adjusted gross national product declined by 0.6% in 2015 from 2014, the Puerto Rico Planning Board reported, the latest sign of the difficulty the commonwealth will have in repaying its debts.
The GDB had estimated that real GNP had fallen by 0.8% in the period. While the negative 0.6% figure announced Friday is preliminary, it is based on a closer reading of the data than the GDB's estimate.
The Economic Activity Index compiled by the Government Development Bank for Puerto Rico slipped 1.8% over the same period, according to an earlier report.
Inflation-adjusted GNP has fallen in five of the past six years. It went down 3.6% in 2010, and 1.7% in 2011 before rising 0.6% in 2012. It then fell 0.1% in 2013, 1.7% in 2014, and 0.6% in 2015, according to "Economic Report to the Governor 2015," from the Planning Board. The board estimated that Puerto Rico's GNP was $68.52 billion in 2015.
In the GDB's last announcement of its index results, the March index was down 2.1% year-over-year and 0.4% from February. The GDB's index isn't meant to exactly indicate the amount and direction of the GNP but is highly correlated with these shifts.
While GNP is usually the most common measure of Puerto Rico's economic activity, some economists look at other figures.
Inflation adjusted net domestic income was up 0.8% from 2014 and down 1% from three years ago, according to the Planning Board. Net domestic income equals gross domestic product minus depreciation on the country's capital assets.
Whereas GNP measures all output associated with Puerto Rican individuals and companies, whether or not the production takes place in Puerto Rico, GDP measures production that takes place inside Puerto Rico.
Inflation-adjusted net national income was down 1.9% from 2014 and 1.4% from three years earlier. Net national income equals net national product minus indirect taxes. Net national income is the total value of goods produced and services provided in a country during one year, after depreciation of capital goods has been allowed for.
Inflation-adjusted personal income was up 1.5% from a year earlier and 0.1% from three years earlier. Personal income is all the income of all the individuals and households on the island.
