Puerto Rico stock index up 8.1% YTD, beating U.S. markets
Corporate earnings and investor confidence help drive 2025 gains, Birling Capital reports.
Puerto Rico’s financial markets are showing signs of strength in 2025, with the Birling Capital Puerto Rico Stock Index (PRSI) up 8.14% year to date, outperforming major U.S. indices and reflecting renewed investor confidence, according to Birling Capital’s April 2025 Global Market Square Monthly Market Review.
“The Puerto Rican market demonstrates resilience,” said Francisco Rodríguez-Castro, president of Birling Capital, in the report released May 14.
Companies such as FirstBank, Popular Inc. and Evertec posted strong returns, led by FirstBank with 12.59% growth year to date.
Puerto Rico’s unemployment rate stood at 5.5% in March. The housing market remained stable, with the median home price at $403,700, unchanged from December 2024.
While the Economic Activity Index continued to contract — down 0.9% in February — Birling Capital highlighted positive trends in gasoline prices and the manufacturing Purchasing Managers’ Index.
In global markets, U.S. indices showed mixed results for April. The Nasdaq composite rose 0.88%, led by a 1.69% gain in the technology sector. The Dow Jones Industrial Average fell 3.08%, pulled down by declines in UnitedHealth Group (-21.44%) and Chevron (-18.67%). The S&P 500 dipped 0.68%, reflecting weakness in health care and energy.
In contrast, international markets outperformed, with the MSCI EAFE Index — which tracks developed markets in Europe, Australasia and the Far East — up 4.69%, and emerging markets rising 1.34%.
On the macroeconomic front, the Federal Reserve Bank of Atlanta’s GDPNow model — which provides a real-time estimate of quarterly gross domestic product (GDP) growth — rose from 2.2% to 2.3% for the second quarter of 2025. Inflation dropped to 2.39% in March, the lowest rate since February 2021, while core inflation fell below 3% for the first time in more than four years.
The report also analyzed the historical performance of the PRSI under different governors. Former Gov. Pedro Rosselló’s 1993–2001 term delivered the highest return at +485.50%, followed by former Gov. Ricardo Rosselló (+67.28%), former Gov. Pedro Pierluisi (+79.81%), former Gov. Alejandro García Padilla (+18.46%) and former Gov. Luis Fortuño (-9.04%). Under Gov. Jenniffer González-Colón, who took office in January, the index has already posted an 8.14% gain.
“Early in her term, [González-Colón’s] leadership appears to influence investor sentiment and stock market performance positively,” the report stated.
Birling Capital added that despite economic headwinds, “the right strategies and investments can capitalize on emerging opportunities.”
The firm said it remains focused on helping clients “navigate these complex markets” through tailored investment solutions.
The April 2025 review points to cautious optimism for Puerto Rico, supported by solid corporate performance and investor confidence, even amid persisting global and domestic uncertainties.
