Puerto Rico heads towards debt default

US territory has lost nearly 200,000 skilled workers as its economy shrinks sharply after a $70bn borrowing binge.

Puerto Rico’s economy is shrinking at an alarming rate. Officially the unemployment rate in the US territory is 13 percent, but some economists say it is three times higher.

The island is $70bn in debt, it has lost nearly 200,000 skilled workers in the past two years and could be heading towards default.

The US government says it is monitoring the situation. But without financial aid or a bail-out, the three and half million people that still live in Puerto Rico could be facing an even bleaker future.

Al Jazeera’s Andy Gallacher reports from San Juan.

Source : Al Jazeera

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