Company: OIA
Filing Date: 2025-03-13
Form Type: 424B5
Source: 0001104659-25-023508
Chunk: 173

Company: Invesco Municipal Income Opportunities Trust
Filing Date: 2025-03-13
Form: 424B5
Chunk 173
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19 stimulus, and funds from the Bipartisan Infrastructure Law which have strengthened Puerto Rico’s economy but may mask underlying weaknesses. Prior to 2017, Puerto Rico gross national product was trending downwards, a trend which was compounded by subsequent natural disasters, including Hurricanes Irma and María in 2017, earthquakes in 2020, and a global pandemic. Through successive federal stimulus packages, Puerto Rico received approximately $120 billion in federal funds, equivalent to approximately 145% of its 2023 gross national product. Puerto Rico’s economic growth is highly dependent on its ability to efficiently deploy those federal funds. The 2024 Fiscal Plan assumes full deployment of this stimulus by the end of FY2035, after which their stimulative effect on the economy will end. Puerto Rico’s Government significantly expanded the Earned Income Tax Credit (EITC) starting in tax year 2021 after receiving permanent additional funds from the federal government under the American Rescue Plan Act of 2021 (ARPA). Since then, $3.6 billion has been paid to more than 640,000 taxpayers with approximately $1.3 billion estimated for FY2023 alone. While not solely attributable to the EITC, given other concurring federal stimulus funding, since the adoption of the expanded credit, Puerto Rico’s non-farm employment level increased by over 106,000 from about 851,100 in January 2021 to 957,600 in February 2023. Puerto Rico’s labor force also increased by about 89,000 over this same period, and as of December 2023, the labor participation rate (the size of the labor force relative to the size of the working age population) increased from around 40.6% in 2020 (1.1 million workers) to 43.6% in 2023 (1.2 million workers). Fiscal Plan and Budget.The Commonwealth has faced a number of significant fiscal challenges, including a structural imbalance between its General Fund revenues and expenditures. Such challenges contributed to the passage of PROMESA, which established the Oversight Board and empowered it to approve Puerto Rico’s fiscal plans and budgets. The Oversight Board is comprised of seven members appointed by the President who are nominated by a bipartisan selection process. The budget process requires the Oversight Board, the Governor, and the Commonwealth’s Legislative Assembly to develop a budget that complies with the fiscal plan developed by the Oversight Board and the Governor. Most of Puerto Rico’s unaffordable debt has been dramatically reduced. The restructuring of the central government debt