Puerto Rico’s economy showed signs of stagnation or slight contraction in the first nine months of fiscal year 2026 (through March), according to a report by the Financial Oversight and Management Board (Junta de Supervisión Fiscal). The Economic Activity Index fell 0.2% against the same period of fiscal 2025, from 128.0 to 127.8. The Planning Board estimated real gross national product would grow 0.4% in fiscal 2025 and projected the same for 2026, versus a 0.1% contraction in the 2024 Certified Fiscal Plan.
As of March 31, 2026, General Fund revenue totaled $9.3 billion, down 3.3% ($313 million) from a year earlier, though 3.4% ($305 million) above the revised fiscal plan projection. The drop came mainly from lower corporate tax and vehicle excise revenue, partly offset by individual taxes, nonresident withholding and the sales tax (IVU). Reported General Fund spending was $7.606 billion, up 1.5% but $531 million below projections; $194 million of that gap was already incurred but unrecorded.
The report blamed accounting delays, fragmented systems and weak controls, which the government hopes a new ERP system will address. The Single Treasury Account held $10.5 billion, 77% ($8.1 billion) restricted or committed, with $1 billion reserved as a minimum operating balance. Puerto Rico added 2,600 jobs in fiscal 2025 and 2,200 in the third quarter of fiscal 2026; unemployment slipped to 5.6%, while labor participation stayed at 44.6%, far below the US 62%.
Year-over-year inflation reached 2.3%. About $62.2 billion in federal funds had been disbursed since fiscal 2018, roughly 27% of FEMA projects and 26% of CDBG programs. The Board warned that spending increases or revenue cuts without a recurring source could cause a budget imbalance before fiscal 2029. The population, estimated at 3.1 million, is projected to fall about 18% by 2053.