EXHIBIT 1 

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Exhibit AHG Ex 01 AAFAF Presentation.pdf Page 1 of 40
A.

B.

C.

D.

E.

F.

G.

H.

I.

1 GOVERNMENT OF PUERTO RICO ~ PUERTO RICO FISCALAGENCY AND FINANCIAL ADVISORY AUTHORITY 

Municipal Secondary Market Disclosure Information Cover Sheet 

Municipal Securities Rulemaking Board (MSRB) 

Electronic Municipal Market Access System (EMMA) 

Additional/ Voluntary Disclosure 

Financial/ Operating Data 

TH IS FILI NG RELATES TO ALL OR SEVERAL SECURITIES ISSUED BY THE ISSUER, OR ALL OR SEVERAL 

SECURITIES OF A SPECIFIC CREDITOR: 

Issuer's Name: Commonwealth of PR {Commonwealth)· Children's Trust f"CT"l Puerto Rico Sales Tax Financing 

Corporation {COFINAl: Puerto Rico Electric Power Authority {PREPAl: Puerto Rico Aqueduct and Sewer 

Authority {PRASAl· Puerto Rico Highways & Transportation Authority {PRHTAl· University of Puerto Rico IUPRl· 

Puerto Rico Housing Finance Authority {PRHFAl: Puerto Rico Industrial Development Company {PRIDCOl: PR 

Ports Authority· Puerto Rico Public Housing Administration {PHAl· Puerto Rico Municipal Finance Agency {MFA)· 

and GDB Debt Recovery Authority {GDB DRAl 

Other Obligated Person's Name {if any): ___________________________ _ 

Nine-digit CUSIP number(s): Commonwealth of PR - 74514L: Children's Trust - 168760: COFINA - 74529J: PR EPA 

- 745268 745260· PRASA - 745160· PRHTA- 745197- UPR - 914811- PRHFA - 74526L 74527A PRIDCO - 745211· PR 

Ports Authority-74528U: PHA- 74526L: MFA - 745277 and GDB DRA - 36829OM3 

TYPE OF INFORMATION PROVIDED: 

D Quarterly/ Monthly Financial Information 

D Change in Fiscal Year /Timing of Annual Disclosure 

D Change in Accounting Standard 

D Interim/ Additional Financial Information/ Operating Data 

D Budget 

D Investment/ Debt/ Financial Policy 

D Information Provided to Rating Agency. Credit/ Liquidity Provider or Other Third Party 

D Consultant Reports 

[8] Other Financial/ Operating Data: "Fiscal Matters: A Discussion on Expenditures & Revenues. Budget. Tax 

Compliance and Economic Indicators· presentation for the PRNow Forums conference held in New York 

City on May 18-19. 2023. 

I represent that I am authorized by the issuer, obligor or its agent to distribute this information publicly. 

Isl Nelson J. Perez Mendez 

Nelson J. Perez Mendez 

Puerto Rico Fiscal Agency and Financ ial Advisory Authority, 

as Fiscal Agent for the Commonwealth and its instrumentalities 

Dated: May 30, 2023 

Roberto Sanchez Vilella (Minillas) Government Center. De Diego Ave. Stop 22, San Juan, PR 00007 I PO Box 42001, San Juan. PR 00940-2001 

0 787.722.2525 @ contact@aafaf.pr.gov ~ aafaf.pr.gov 

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The Puerto Rico Fiscal Agency and Financial Advisory Authority (“AAFAF”), the Government of Puerto Rico, its instrumentalities and agencies (the “Government”), and

each of their respective officers, directors, employees, agents, attorneys, advisors, members, partners or affiliates (collectively, with AAFAF and the Government, the

“Parties”) make no representation or warranty, express or implied, to any third party with respect to the information contained herein and all Parties expressly disclaim any

such representations or warranties. The Government has had to rely upon preliminary information and unaudited financials. As such, AAFAF and the Government have

made certain assumptions that may materially change once those financial statements are fully audited. The Parties do not owe or accept any duty or responsibility to any

reader or recipient of this presentation, whether in contract or tort, and shall not be liable for or in respect of any loss, damage (including without limitation consequential

damages or lost profits) or expense of whatsoever nature of such third party that may be caused by, or alleged to be caused by, the use of this presentation or that is

otherwise consequent upon the gaining of access to this document by such third party.

This document does not constitute an audit conducted in accordance with generally accepted auditing standards, an examination of internal controls or other attestation

or review services in accordance with standards established by the American Institute of Certified Public Accountants or any other organization. Accordingly, the Parties do

not express an opinion or any other form of assurance on the financial statements or any financial or other information or the internal controls of the Government and the

information contained herein. Any statements and assumptions contained in this document, whether forward-looking or historical, are not guarantees of future

performance and involve certain risks, uncertainties, estimates and other assumptions made in this document. This presentation is given as of the date hereof, may not be

final, is based on information available to AAFAF as of the date hereof, is subject to any assumptions set out therein and is subject to change without notice. Accordingly,

this presentation may be based on (a) data and information that may no longer be current and (b) estimates that may involve highly subjective assessments. It should be

understood that subsequent developments may affect this document and AAFAF does not undertake any obligation to provide any additional information or to update

any of the information or the conclusions contained herein or to correct any inaccuracies which may become apparent. Any data or information regarding, or based on,

past performance is no indication of future performance.

The economic and financial condition of the Government and its instrumentalities is affected by various legal, financial, social, economic, environmental, governmental

and political factors. These factors can be very complex, may vary from one fiscal year to the next and are frequently the result of actions taken or not taken, not only by

the Government, but also by Financial Oversight and Management Board for Puerto Rico and other third-party entities such as the government of the United States,

including without limitation actions by the Federal Emergency Management Agency, actions related to Medicaid or the Affordable Care Act and actions under the

Community Disaster Loans Program. Because of the uncertainty and unpredictability of these factors, their impact cannot be included in the assumptions contained in this

document.

Future events and actual results may differ materially from any estimates, projections, or statements contained herein. Nothing in this document should be considered as an

express or implied commitment to do or take, or to refrain from taking, any action by AAFAF, the Government, or any government instrumentality in the Government or an

admission of any fact or future event. By receiving this document, the recipient shall be deemed to have acknowledged and agreed to the terms of these limitations. This

document may contain capitalized terms that are not defined herein or may contain terms that are discussed in other documents or that are commonly understood. You

should make no assumptions about the meaning of capitalized terms that are not defined, and you should refer questions to AAFAF should clarification be required.

This document does not constitute an offer to sell or the solicitation of an offer to buy or restructure any security, nor does it constitute an offer or commitment to lend,

syndicate or arrange a financing, underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction, or commit capital, or to

participate in any trading strategies, and does not constitute legal, regulatory, accounting or tax advice to the recipient. Nothing in this document shall be considered a

solicitation, recommendation or advice to any person to participate, pursue or support a particular course of action or transaction, to purchase or sell any security, or to

make any investment decision. Recipient is responsible for making its own independent investigation and appraisal of the risks, benefits, appropriateness and suitability of

any course of action or transaction contemplated by this presentation. The decision to proceed with any transaction or action contemplated by this presentation must be

made by the Recipient in light of its own commercial assessments, and AAFAF will not be responsible for such assessments.

DISCLAIMER

FORUMS 2

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Fiscal Matters:

A Discussion on Expenditures & 

Revenues, Budget, Tax Compliance 

and Economic Indicators

Hon. Omar J. Marrero, Secretary of State & Executive Director of AAFAF

Hon. Francisco Parés, Secretary of the Treasury

Juan Carlos Blanco, Executive Director of the Office of Management & Budget

Hon. Gabriel Maldonado-González, Secretary of Labor and Human Resources 

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Introduction: Progress to Date

Hon. Omar J. Marrero, Secretary of State & Executive Director of AAFAF

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Since 2017 Puerto Rico has endured through unprecedented challenges and natural disasters but has shown resolve and

resiliency in moving forward.

Introduction: Historical Perspective

Notes: (1) Includes CCDA, ERS and PRIFA.

5

~ I 

I 

: Title 111 - The Oversight , 

' Board files for Title Ill ' 

: profecfion for fhe 

• Commonwealth, COFINA, 

: HTA, ERS, and PREPA. , I I L ___ Se_ring/Summer 2017 _____ , 

l 

~ I 

I I 

I I 

, COFINA Effective 1 

I 

: Date , I I 

I I 

Lfebruary 12. 2019 _____ , 

Earthquakes 

Puerto Rico suffers the 

most serious 

earthquakes in recent 

memory. 

January 2020 

COVID-19 

Puerto Rico's economics 

situation exacerbated by the 

COVID-1 9 pandemic, causing 

a reevaluation of February 

2020 PSA. 

March2020 

~ I 

I I 

I • I 

, CWPOA Effective 1 

: Date1 

I 

I I L March 15. 2022 ______ 1 

I l 

~ I 

I I 

I 

: HTA POA I 

: Effective Date 

I 

I I 

L ~!C_!~~e! ~ ~0_3':_ _____ I 

I ♦ ----- ====== --- ===== === ====♦ === ====~ 

FORUMS 

Fall 2017 

Hurricanes 

Hurricanes Marfa and 

Irma inflic t 

unprecedented 

damage on Puerto Rico 

and its infrastructure. 

t 

February 2020 

Initial CWPOA 

The Oversight Board 

files the first amended 

p lan of adjustment 

based on Feb 2020 PSA 

with creditors. 

January 18. 2022 

Eighth Amended 

CWPOA 

Confirmation of the 

Commonwealth Plan of 

Adjustment to exit Title 111. 

October 12. 2022 

Fifth Amended 

HTA Plan of 

Adjustment 

Confirmation of 

HTA Plan of 

Adjustment to exit 

Title Ill . 

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6

Sustainable Capital Structure – Completed Restructurings

 To date, claims against 

Commonwealth and 

other public entities 

have been reduced 

from $64 billion to $29 

billion in new debt.

 Tax-supported debt 

service has been 

reduced from an 

average annual debt 

service of $2.6 billion to 

$1.15 billion (incl. 

COFINA).

 CVI payments of $361.8 

million made in 2022; as 

of March ‘23, baseline 

outperformance metric 

for CVI payments in FY23 

has been met.

Notes: (1) Clawback claims include ~$2 billion PRIFA and ~$400 million CCDA and MBA. (2) Commonwealth includes GO/PBA claims of ~$19 billion, 

estimated GUCs of $2.75 billion, other miscellaneous claims of ~$1 billion, and ERS claims of ~$3 billion. (3) PREPA is excluded as it is not yet restructured

and the Government of PR terminated the 2019 PREPA RSA earlier this year. Court mandated mediation ongoing, Plan of Adjustment filed by the 

Oversight Board on December 16, 2022. (4) PFC restructuring contemplates the issuance of $47 million in new GDB-DRA bonds which is subject to 

ongoing litigation due to objection raised by GDB-DRA.

$29

Commonwealth Pre-PROMESA Debt Obligations

($ in billions)1, 2, 3

Commonwealth Post-CWPOA Debt Obligations

($ in billions)4

~55% 

Reduction

$64

$34

$7.4

Other Clawback Entities - $2.4

COFINA - $18 

COFINA, $12 

GDB - $5 

GDB-DRA - $3 

PRASA - $5 

PRASA - $5 

Commonwealth - $26 

Commonwealth - $7 

HTA - $6 

 $-

 $10

 $20

 $30

 $40

 $50

 $60

 $70

Pre-PROMESA Claims 2022 Post-CWPOA

COFINA GDB PRASA Commonwealth HTA PFC Other Clawback Entities

PFC - $1.5

HTA - $1.6

6

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FORUMS 

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Revenues, Liquidity and 

Compliance

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General Fund Net Revenues have grown at a 6.5% CAGR from FY2017 through FY2022 despite numerous

catastrophes that have plagued the island over this time. Increased compliance in SUT, PIT and CIT have

driven revenues to the highest ever in Puerto Rico.

General Fund Net Revenues

Source: Puerto Rico Treasury Department.

+10%

Strict COVID-19 measures

were successful in slowing

down the virus but resulted

in temporary yet significant

decline in revenues.

Cumulative Revenue 

Growth: 37% from FY2017 

through FY2022 (excl. 

clawed back revenue)

($ in millions)

FY2017 FY2018 FY2020 FY2019 FY2021 FY2022

$9,313

$11,376

$11,668

$12,801

$9,335 $9,289 0%

+22% -18%

+26%

$7,379

$8,483

FY23 Proj. FY23 Actual

General Fund Net Revenues

FY2023 Actual vs Projection

+15%

8

8

C) 

C) C) C) 

t 

FORUMS 

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3 Since 2017, General Fund net revenues have increased by 37% while the contribution from Act 154 revenues

declined from 22% to 12%. In addition, the prepetition moratorium acts clawed back approximately $700m in

revenues from HTA, PRIFA, CCDA and AMA, which is not included in the figures below (for comparative purposes).

General Fund Net Revenues

General Fund Net Revenues, 2017 General Fund Net Revenues, 2022

Source: https://hacienda.pr.gov/inversionistas/estadisticas-y-recaudos-statistics-andrevenues/ingresos-netos-al-fondo-general-general-fund-net-revenues

Personal 

Income Tax

22%

Corporate 

Income Tax

20%

SUT

21%

Act 154

12%

Other Tax 

Revenues

19%

External and NonTax Revenues

6%

Personal 

Income Tax

21%

Corporate 

Income Tax

17%

SUT

18%

Act 154

22%

Other Tax 

Revenues

17%

External and NonTax Revenues

5%

Total: $9.33 bn Total: $12.80 bn

General Fund Net Revenues, 2023 YTD

Personal 

Income Tax

23%

Corporate 

Income Tax

20%

SUT

23%

Act 154

8%

Other Tax 

Revenues

25%

External and NonTax Revenues

2%

Total: $8.48 bn

9

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FORUMS 

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The omnibus spending bill that Congress approved in December 2022 contains the largest ever

allocations for Medicaid for Puerto Rico in the history of the program. Highlights include:

o The base allocations of $3.275 billion for FY 2023; $3.325 billion for FY 2024; $3.475 billion for FY 2025;

$3.645 billion for FY 2026; and $3.825 billion for FY 2027.

o An additional $300 million per year is available if the Secretary of HHS certifies that the Puerto Rico

state plan has established a reimbursement floor for physician services under Part B of Medicare that

is at least at 75% of the payment rate under the Part B payment fee schedule.

o A further increase of $75 million is available for each year that Puerto Rico meets certain regulatory

requirements relating to Medicaid.

o The FMAP is set at 76%.

o This provides stability to the system for a period of 5 years and protects the island after 5 years.

Stabilized Medicaid Funding

10

10

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FORUMS 

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Since filing for Title III in 2017, Commonwealth cash levels have improved, driven by General Fund revenue

outperformance, expense measures and the moratorium on debt service payments. This is all despite Hurricanes

Irma and Maria, the 2019 and 2020 earthquakes and the COVID-19 pandemic.

Commonwealth Liquidity Has Strengthened

Pursuant to the 

Commonwealth Plan of 

Adjustment, over $10 billion 

was distributed to various 

Commonwealth creditors on, 

or about, the Effective Date

Notes: (1) In FY2022 the Commonwealth generated a surplus more than $4 billion and had additional transfers from other Commonwealth 

agencies in excess of $2 billion, both of which offset the $10.8 billion in distributions to paying agent for CWPOA distributions. (2) Including $743 

million from the SURI Sweep Account that are pending reconciliation and transfer to the TSA.

14 391 

1,799 

3,098 

7,225 

7,701 

11,671 

7,999 7,814 

 -

 2,000

 4,000

 6,000

 8,000

 10,000

 12,000

 14,000

6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 4/28/2023

1

($ in millions)

2

11

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FORUMS 

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Oracle ERP will streamline the government’s Financial, Supply Chain, Human Capital Management, and Payroll

technology ecosystem bringing significant benefits.

Leveraging Technology to Enable Fiscal Reform

Benefits Gained

Automated Account 

Reconciliation

Improved Cash 

Management

Regular Monthly 

Accounting Close

Timely Financial 

Statements

Budgetary Reporting 

and Controls

Internal Controls

12

Ill 

F O R U M 

TAX & REVENUE 

ADMINISTRATION 

.. 

AUTOMATED 

TIME & ATTENDANCE 

il 

CENTRALIZED PROCUREMENT 

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In 2024 Oracle Cloud ERP will be operational and provide....

The Centralized ERP Solution for the Government

 SINGLE INTEGRATED PLATFORM: FINANCIAL, 

SUPPLY CHAIN, HCM, AND PAYROLL

 STANDARDIZED PROCESSES

 FASTER PROCESSING TIMES

 IMPROVED BUDGETARY CONTROLS

 TIMELY AND ACCURATE REPORTING

 CENTRAL SOURCE FOR DATA

13

FORUMS 

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Significant progress has been achieved in becoming current on the issuance of audited financials.

Status of Audited Financial Statements

Fiscal Year Audit Status

FY 2018 Finalized

FY 2019 Finalized

FY 2020 Finalized

FY 2021 To be issued on or about May 31, 2023 

FY 2022 To be issued October 31, 2023 

FY 2023 To be issued May 1, 2024

Current continuing disclosure deadline

14

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FORUMS 

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Budgeting and Expenditures

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The Government continues to focus on achieving balanced budgets while optimizing the allocation of resources

to provide effective public services to the residents of Puerto Rico. Since FY2016, General Fund operating

expenses have been reduced by approximately 17%.

Operational Restructuring – Expense Reduction

General Fund Operating Expenses ($ in millions)1, 2

Source: Office of Management and Budget

Notes: (1) Includes UPR appropriation. (2) Excludes PayGo, debt service, contributions to non-government entities and incentives and subsidies for social benefits.. 

3,392 3,427 3,118 2,809 2,702 2,755 2,580

3,418

2,685 2,902 3,167

2,568 2,761 3,086

6,810

6,112 6,020 5,976

5,270 5,516 5,666

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

Payroll & Related Other Operating Expenses

Since 2016, central 

government payroll 

has declined by 24%

16

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■ ■ 

FORUMS 

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FY2023 Budget to Actual through March 2023 shows underspending of $3.2 billion or 35% based on actual

disbursements. This underspending reflects normal trends in the central government spend cycle, with a

material amount of expenses charged in the final quarter of the fiscal year.

Fiscal Year 2023 Budget vs. Actual Expenses

FY2023 Year-to-Date Budget to Actual (through March 2023)

Source: Office of Management and Budget

Notes: (1) Includes UPR appropriation. (2) Excludes PayGo, debt service, contributions to non-government entities and incentives and subsidies for social benefits.. 

$9,320 

$6,045 

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

FY2023 YTD Budget FY2023 YTD Actual

Main Drivers of Variance

1. Assignments (Custody of Treasury)

 Non-Governmental Entities: $797M

 Current & Prior Period Obligations: $705M

2. Assignments (Custody of OMB)

 Milestones (FOMB): $386M

3. PayGo: $589M

4. Payroll: Underspend generally related to 

budgeted, but unfilled positions

17

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.... .... .... ........ '"'1$~ 

.... 0 .... .... .... .... 

" 

FORUMS 

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PROMESA section 202(c) sets forth a process for the approval of annual budgets that must comply

with the certified fiscal plan

Budget Process Overview

Budget

Preservation 

Levers

• Budget provides for restriction on encumbrances and disbursements of General Fund 

appropriations such that 2.5% is held back until the fourth quarter of the fiscal year

• Judicial Branch, Public Broadcast Corp, agencies in the Department of Public Safety and Health 

grouping and PayGo appropriations are not subject to this withholding

Restriction on 

Prior Year 

Budgeted Funds

• Budget provides for restriction on use of appropriations of prior fiscal years to a 60-day period 

after the end of the fiscal year, assuming such appropriations have been encumbered by June 30 

• Exceptions apply to permanent improvements and to equipment with long procurement cycles 

and certain appropriations held in custody by the Treasury Department

Reporting

Requirements

• Fiscal Plan provides for budget to actual reporting on a recurrent basis to reflect recorded general 

fund expenditures.

Prior Year 

Reprogramming

• The budget provides for the suspension of reprogramming or extension of appropriations of prior 

fiscal years.

Budget Reserves

• Budget provides for restriction on use of reserves, particularly the emergency and capital 

expenditure reserves

• Fiscal plan requirement: $130MM/year for 10 years (totaling ~2% of FY2018 GNP)

Budgets are now developed in phases, with a responsible exercise of planning and

development of requested budgets and active participation by agencies.

18

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FORUMS 

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As part of the implementation of Budget Best Practices, OMB’s Budget Division has been

restructured into three main areas:

Enhancements to the Office of Management and Budget 

Budget Office

o Budget Operations - focused on the day-to-day budget operations, monthly closings, and

budget to actual performance regarding Government agencies.

o Strategic Planning - focused on the planning of the budget process both long and short term.

o Quality and Compliance - focused on monitoring compliance requirements and regulations as

defined in the approved Budget

A new Center for Government Excellence was also created to lead the transformation of the

government and the development of more specialized work divisions in the budget Directorate to

achieve greater focus and effectiveness in budget management activities.

19

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FORUMS 

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We have established the Grants Management Office (GMO) to provide guidance and technical

assistance to agencies and municipalities with managing federal funds and programs.

Efficiency Initiatives: Grants Management Office

• GMO seeks to use best practices by identifying risks and assisting state entities in taking steps to 

prevent noncompliance and possible losses of funding opportunities, as well as providing the 

necessary knowledge. 

• Analyze pooled budgets to complement state and federal funding sources in compliance with 

applicable laws and regulations. 

• Expanded knowledge sharing between local and federal agencies facilitated by the GMO, further 

enhances knowledge in the local government, improving compliance and streamlining 

disbursements.

Six Main Objectives

Risk Assessment Fiscal Guidance

Capacity Building Data Analysis

Policymaking Facilitator for Federal and Local Governments

20

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FORUMS 

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Civil Service Reform focuses on transforming the public servant experience and supporting their professional

growth in a transparent and sustainable manner to create a government that provides services of excellence and

quality.

Civil Service Reform

• Market leading practices for compensation

• Employee experience (need to have competitive

salaries, roles aligned, compensation according to

performance and career progression)

• Understanding of periodic or circumstantial economic

conditions

• Difficulty recruiting and retaining talent

• Below market pay

• Salary structures not aligned to market leading 

practices

• Lack of centralized processes have resulted in

inconsistent pay practices across agencies

• Training employees on how to apply these practices

Challenges Drivers

• Recruiting and talent retention has been a challenge, partly attributed to lower than market compensation.

• Compensation workstream within the Civil Service Reform is benchmarking salaries and reviewing employee pay against

market competitive rates of pay across Government agencies.

Values: Clear Processes Agency 

Alignment

Higher 

Retention Equity Pay Competitively

21

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r------------------------------------------------------ r------------------------------------------------------

------------------------------------------------------' I -------------------------------------------------------' 

FORUMS 

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Financial Management 

Agenda

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A detailed fiscal roadmap helps the government in restoring structural balance, efficiency, and long-term fiscal

stability.

The Path to Fiscal Stability

Government of Puerto Rico’s Fiscal Roadmap

Financial 

Management 

Agenda (FMA)

FMA’s 

Best Practices

Government of 

Puerto Rico 

Government 

Efficiency Measures 

12 initiatives lay the 

foundation for restoring 

fiscal responsibility in 

Government and 

ensuring financial 

stability.

• 2 Foundational

• 4 Central

• 6 Supporting

The FMA provides 

direction for the 

Government to adopt 

best practices that will 

help ensure:

• Balanced Budgets

• Consensus Revenue 

Projections

• Monthly Budget 

Monitoring

The government has 

created a new level of 

transparency and 

control over government 

spending.

• Creates oversight of 

budgets, contracts, 

and enforces 

progress against 

performance targets.

Government efficiency 

measures streamline and 

transform government 

operations by optimizing 

revenue collection and 

reducing governmentwide expenditures.

23

~ ~ --------------------------------------------------------- ~,] ~ ~ 

~~ ~ ~~ ~ ~~ 

FORUMS 

0 \:.) ~ 

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Exhibit AHG Ex 01 AAFAF Presentation.pdf Page 25 of 40
Initiatives Included in the FMA

Financial 

Management 

Agenda 

Initiatives

• Automated Time & 

Attendance

• Cash & Bank

Account 

Monitoring

• Procurement Best

Practices

• Non-Partisan

Legislative Scoring

• Real Estate Best Practices

• Real Property Registry

Supporting 

Initiatives

• OCFO

• Civil Service

Reform

Foundational 

Initiatives

• Timely Audited

Financial Statements

• Debt Management

Policy

• Budget Best Practices

• Federal Funds

Management

Central 

Initiatives

24

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FORUMS 

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Exhibit AHG Ex 01 AAFAF Presentation.pdf Page 26 of 40
The Labor Market

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Exhibit AHG Ex 01 AAFAF Presentation.pdf Page 27 of 40
Labor Market – Population Trends

Total Population in Puerto Rico as per U.S. Census Bureau 

(rev July 2022)

Total Civilian Non-Institutional Population 

(Age 16 and Older)

3,522,037

3,808,610

3,725,789

3,285,874

3,221,789

3,100,000

3,200,000

3,300,000

3,400,000

3,500,000

3,600,000

3,700,000

3,800,000

3,900,000

1990 2000 2010 2020 2022

2,808,000

2,885,000

2,910,000

2,878,000

2,765,000

2,755,000

2,751,000

2,737,000

2,738,000

2,735,000

2,734,000

2,600,000

2,650,000

2,700,000

2,750,000

2,800,000

2,850,000

2,900,000

2,950,000

Dec-00 Dec-04 Dec-08 Dec-12 Dec-16 Dec-20 Dec-21 Dec-22 Jan-23 Feb-23 Mar-23

Source: Department of Labor and Human Resources.

Lost an estimated 

175,000 people or 

potential workforce in 

the last 15 years

-13.5% decrease in population between 

2010 and 2022, for an estimated loss of 

504,000 citizens in twelve years

52.7% of our population is female

22.7% of our population is 

65 years of age or older

26

~~

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FORUMS 

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Exhibit AHG Ex 01 AAFAF Presentation.pdf Page 28 of 40
1,423,000

1,119,000 1,114,000 1,118,000

1,214,000 1,215,000 1,204,000 1,189,000 1,198,000 1,203,000 1,202,000

1,278,000

985,000 1,011,000 1,018,000

1,133,000 1,137,000 1,130,000 1,117,000 1,126,000 1,130,000 1,130,000

145,000 134,000 103,000 100,000 81,000 78,000 74,000 72,000 72,000 73,000 73,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Dec-06 Dec-16 Dec-20 Jan-21 Dec-21 Jan-22 Mar-22 Dec-22 Jan-23 Feb-23 Mar-23

Total Workforce Total Employment Total Unemployment

Labor Market – Workforce, Employment and Unemployment

Source: Department of Labor and Human Resources.

Total Workforce, Employment and Unemployment in Puerto Rico 

Seasonally Adjusted (PRDOL; U.S. Bureau of Labor Statistics)

+84,000 total workforce and +112,000 total 

employees since January 2021; among 

the highest numbers in over a decade

192,000 self-employed

(record numbers)

27

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■ ■ ■ 

FORUMS 

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Exhibit AHG Ex 01 AAFAF Presentation.pdf Page 29 of 40
March 2023

Nonfarm Employment by Industrial Sector in Puerto Rico

Mining, Logging & Construction 

35,400

4%

Manufacturing 

83,300

9%

Trade,

Transportation

& Utilities

185,000

19%

Information 

16,400

2%

Financial 

Activities

46,800

5%

Professional & Business 

Services

142,000

15%

Education & Health Services 

124,400

13%

Leisure & Hospitality 

92,200

10%

Other Services 

19,100

2%

Government 

199,100

21%

According to another 

publication, as of Q3 

2022, we have 49,965 

employer units, an 

increase of 1,982 units 

from Q3 2021, and 

2,900 units if 

compared to Q1 2021

Record numbers in 

the Leisure & 

Hospitality Sector

Source: Department of Labor and Human Resources.

Total of 943,700 nonfarm salary and 

wage employees, which is +92,800 

more than in January 2021

28

■ ■ 

■ 

■ 

■ 

■ 

■ 

FORUMS 

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Labor Force Participation and Unemployment

Labor force participation has shown significant improvement since 2016, while unemployment rate

has reached historically low levels. Economic reforms are targeting jobs that can support families,

creating stable communities, and increasing labor force participation to promote further growth.

Labor Force Participation (%) Unemployment (%)

11.9

9.3 9

6.7 6.5 6.2 5.8 6.0 6.0 6.0 6.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

US Labor Participation Rate (as of 3/2023): 62.6% US Unemployment Rate (as of 3/2023): 3.6%

40.9 40.4 40.4

45.0

44.0 44.1

44.7 44.4 44.1 43.6

30.0

32.0

34.0

36.0

38.0

40.0

42.0

44.0

46.0

Source: Department of Labor and Human Resources and Bureau of Labor Statistics.

29

FORUMS 

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Labor Market- People Out of the Workforce

Retired 

427,000

28%

Disease, health

condition or disability

50,000

3%

Too old or too young 

78,000

5%

Does not

want to work

10,000

1%

Other reasons 

48,000

3%

Domestic Work

490,000

32%

Disabled

195,000

13%

In School 

240,000

15%

Source: Department of Labor and Human Resources and Bureau of Labor Statistics.

Distribution of People Out of the Workforce by Reported Reason (March 2023)

Women comprise about 

95% of those who report 

domestic work as the 

reason for not being in 

the labor force

1,541,000 citizens 

out of the 

workforce for 

various reported 

reasons

At the same time, 

approximately 1.4 

million citizens 

participate in the 

federally funded 

Nutritional 

Assistance 

Program (NAP)

30

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■ ■ 

■ 

■ ■ 

■ 

■ 

■ 

FORUMS 

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Labor Market- People Out of the Workforce

Source: Department of Labor and Human Resources.

Distribution of People Out of the Workforce by Age Group (March 2023)

38% -or 581,000- people of 

those not in the workforce 

are below the age of 55, 

while many above that age 

could also potentially work

65+ years

694,000

45%

35-44 years

90,000

6%

25-34 years

105,000

7%

16-19 years

140,000

9%

20-24 years

105,000

7%

55-64 years

266,000

17%

45-54 years

142,000

9%

~~

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■ 

■ 

■ 

■ 

■ 

■ 

FORUMS 

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Exhibit AHG Ex 01 AAFAF Presentation.pdf Page 33 of 40
Labor Market

$12.35

$12.92 $13.07

$13.12

$13.13

$13.23 $13.56

$13.82

$13.91

$14.16

$14.27

$14.78

$14.65

$15.54

$9.26 $9.42 $9.54 $9.61 $9.51 $9.42 $9.61 $9.73 $9.76 $10.01 $10.13

$10.62 $10.93 $11.29

$7.25

$8.25

$9.25

$10.25

$11.25

$12.25

$13.25

$14.25

$15.25

$16.25

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Mean Median

Source: Department of Labor and Human Resources.

As per May 2022 estimates, in PR we have an average hourly 

wage of $15.54 and a median hourly wage of $11.29, both of 

which have been gradually increasing over time.

Mean and Median Salary in Puerto Rico (PRDOL; U.S. Bureau of Labor Statistics)

32

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FORUMS 

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Labor Market – Increasing Labor Force Participation

Approximately 1.5 million residents of Puerto Rico are not part of the workforce.

Who is Outside the Workforce?

 In welfare programs

 Women

 Population with functional diversity

 Younger population

 Older adults

 Formerly incarcerated

What is Being Done

Skilling and Reskilling: Connecting these groups with

employers after adequate skilling and reskilling with WIOA

funding and other programs.

Temporary Work Visas: Key to help sustain adequate

workforce levels for several sectors in collaboration with

private sector employers.

H-2B Visa: Ensuring that federally-funded reconstruction

process has adequate labor supply through H-2B Visa or

any modification thereof as currently proposed by

Governor Pierluisi.

 H-2A Visa also increasingly important for agricultural

sector.

33

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r----------------------------------------------------------------1 

FORUMS 

' ' ' ' ' 

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34

Concluding Remarks

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We are convinced our full potential is still ahead of us, with a

generational opportunity afforded by unprecedented federal

support, private sector investments and the creation of

competitive conditions for the private and public sectors to

thrive.

As an additional step in our committment to the highest levels of

transparency to the bond market, we are pleased to announce

that we have joined the BondLink network.

35

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Exhibit AHG Ex 01 AAFAF Presentation.pdf Page 37 of 40
www.PuertoRicoBonds.pr.gov

 With a simple signup and login process, our new 

Investor Relations (IR) website will allow you to 

receive automatic alerts for important 

documents, event notices, press releases, or 

project updates.

 New website currently includes subsites for GO 

Bonds, HTA, and PRASA, and the previously 

launched IR website for COFINA.

 Combined, we are now sharing almost 800 

financial reports and documents on an easy-touse platform that is free and open to all investors 

and visitors.

36

36

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We are now using the same IR platform as the top issuers in the municipal bond market, including the largest

issuer in the bond market – the State of California – as well as a number of large, sophisticated issuers. A

select few include:

www.PuertoRicoBonds.pr.gov

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