Puerto Rico Industry Sectors
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Puerto Rico Industry Sectors: Puerto Rico Industries
Puerto Rico has one of the most dynamic economies in the Caribbean region and Puerto Rico’s industry sectors remain the key to its economic activity. Encouraged by the duty free access to the US and the various tax incentives offered by Puerto Rico, several US companies have made massive investments in this island nation. The country’s tourism and other service industries play a significant role in its economy and contribute nearly 50% of its GDP.[br]
Puerto Rico Industry Sectors: Puerto Rico Industries
Puerto Rico’s manufacturing segment is highly efficient, employing only 19% of the population while contributing nearly 45% of the GDP. The country’s manufacturing segment has witnessed a rapid shift from labor intensive industries like food, tobacco, leather and clothing to capital intensive areas such as pharmaceuticals, electronics, chemicals, metal products, precision instruments units and machinery. The manufacturing units account for almost three fourths of Puerto Rico’s industry contribution to the GDP. A large number of manufacturing units are offshore extensions of US companies and have been attracted to Puerto Rico because of its favorable tax regime.
Widespread expansion of Puerto Rico’s manufacturing and tourism industries has also driven the growth of the island’s construction industry. The country’s government has invested huge funds in the development of newer hotels and roads, besides renovating existing infrastructure. Puerto Rico’s construction industry again comprises of firms largely backed by the United States.
Tourism and associated services have emerged as one of the fastest growing industries in Puerto Rico, largely because of the island nation’s attractive beaches and tropical climate. The country boasts of several coastal tourist attractions, of which the most prominent are San Juan, Ponce, Mayaguez, Bayamón and Caguas. The privatization of several state run businesses, notably hotels, telecommunications, transportations and hospitals, has also boosted the contribution of the services segment in recent years.
Puerto Rico’s agriculture segment is handicapped by the country’s vast mountainous terrain. The country is not self sufficient in meeting the local requirements for any of the agricultural products and thus imports large quantities of food items. Sugar production, once the main feature of Puerto Rico’s agriculture segment, has given way to cattle and livestock rearing. The country’s agriculture segment employs nearly 2% of the population while contributing only 1% to its GDP. Puerto Rico’s bamboo and tropical hardwoods support a small furniture industry.
