Puerto Rico in early recovery from 'depression': Fed official

[November 29, 2016]  (Reuters) - Puerto Rico, struggling through a drawn-out "depression," has already begun an economic revival that could mirror past recoveries in U.S. cities like New York if the island continues to focus on its fiscal situation and labor force, an influential Federal Reserve official said on Tuesday.

New York Fed President William Dudley takes part in a panel convened to speak about the health of the U.S. economy in New York, U.S. on November 18, 2015. REUTERS/Lucas Jackson/File Photo
 

"Puerto Rico has been through a very rough 10 years. The economy has been in a long slump that could easily be called a depression," said William Dudley, president of the New York Fed district that includes the U.S. island territory.

"I am confident that Puerto Rico has started on the road to recovery," he said in a speech in San Juan. "Getting the fiscal situation in order is an important first step. The factors leading up to the crisis took many years to develop, and history shows that a successful recovery from a crisis also takes time."

(Reporting by Jonathan Spicer; Editing by Chizu Nomiyama)

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