Convergent/divergent economic trajectories of Puerto Rico and the United States

This paper analyses the trajectories of convergence and divergence between Puerto Rico and the economy of the United States, focusing on output convergence. It is structured in seven sections. Following the introduction, the first section provides an overall and general social and economic picture of Puerto Rico in relation to the United States. The second section highlights the main features of the three phases of convergence/divergence for both economies. The third, fourth and fifth sections analyse in greater detail the convergence/divergence Phases I to III trying to identify the possible elements that account for the narrowing or widening output gap. The sixth section examines the relationship between trade and convergence. The last section attempts to highlight key current trends that may impact on the process of convergence of Puerto Rico relative to the United States.