Planning Board launches economic impact study as drought intensifies

Puerto Rico Planning Board President Héctor Morales Martínez (Facebook via Junta de Planificación)

By THE STAR STAFF

With the island facing one of the most severe droughts in recent decades, the Puerto Rico Planning Board (JP by its initials in Spanish) announced on Wednesday a comprehensive effort to measure the economic fallout across public and private sectors.

The study aims to give the government a verified, data‑driven picture of losses, operational disruptions, and rising costs tied to the ongoing emergency.

The initiative is part of the response to Executive Order OE‑2026‑035, signed by Gov. Jenniffer González Colón, which activated multiple agencies to address the drought’s growing effects on agriculture, industry and essential services.

JP President Héctor Morales Martínez said the goal is to gather “direct and verifiable data” to determine the real scope of the drought’s impact.

“This information is necessary not only to measure losses, but to give the government an objective basis when evaluating assistance initiatives, claims, incentives, and other measures to mitigate damages and support economic recovery,” he noted.

Beginning this week, the JP’s Economic and Social Planning Program will distribute questionnaires to agencies, municipalities, public corporations, private companies and nonprofit organizations. The forms request detailed information on losses, additional expenses, operational interruptions, employment effects, mitigation costs and any assistance already received.

Officials emphasized that broad participation is essential to produce an accurate and representative estimate of the drought’s economic footprint. The data will help identify sector‑specific needs and guide decisions on aid programs, recovery strategies and long‑term policy planning.

Puerto Rico has faced significant drought events before, and the JP has documented their economic consequences. The 1994-1995 drought caused nearly $194 million in agricultural losses over two fiscal years. The island’s broader economic activity also contracted, with reductions in gross product estimated at $65.7 million in 1993-1994 and $140 million in 1994-1995.

More recently, the 2014-2015 drought produced an estimated $22.7 million in economic damages after adjusting for agricultural income. Losses were spread across agriculture, manufacturing, services and government operations. Manufacturing alone reported $3.4 million in additional expenses and roughly half a million dollars in foregone revenue.

Those events demonstrated that drought impacts extend beyond crop losses: they disrupt industrial processes, strain public services, and generate extraordinary costs that ripple through the economy.

Morales Martínez said that while past droughts offer useful reference points, each event presents unique conditions.

“We need to understand directly how this drought is affecting operations, productive sectors, and employment,” he said, urging all entities that receive the questionnaire to respond.

Once completed, the study will allow the JP to produce a grounded estimate of the 2026 drought’s economic impact. The findings will support government decisions on assistance programs, recovery measures, incentives and claims, while also informing long‑term planning for future climate‑driven emergencies.