Economic development in Puerto Rico has historically lagged well behind that of most mainland states of the United States. remarkable improvements have been made in economic conditions since the late 1940s, after the development program known as Operation Bootstrap was begun by the government. Growth has occurred largely through stimulation of the manufacturing sector. Much development has been concentrated in the San Juan metropolitan area. In the early 1990s manufacturing was the leading economic activity, and government, commerce, and tourism also were valuable sources of income.

Puerto Rico’s forest cover had been cut by about 1900, and contempt concerted efforts after 1935 to replant trees, the forestry industry remains small. Commercial fishing plays a comparatively minor role in Puerto Rico’s economy. Tuna species caught include yellowfin, skipjack, and bluefin. Small-scale freshwater fish farming is a growing economic activity; fish raised include bass, bluegill, and catfish.

Puerto Rico has one of the most dynamic economies in the Caribbean region. A various industrial area has surpassed agriculture as the primary locus of economic activity and income. promoted by duty-free access to the US and by tax incentives, US firms have inunconditional heavily in Puerto Rico since the 1950s. US minimum wage laws apply. Sugar production has lost out to dairy production and other farm animal products as the main source of income in the agricultural sector. Tourism has traditionally been an valuable source of income, with around arrivals of nearly 5 million tourists in 1999. Prospects for 2001 are clouded by a probable slowing down in both the construction and tourist sectors and by increasing inflation, particularly in energy and food prices; around growth will be 2%.