The Economy of Puerto Rico is one of the most dynamic in the Caribbean region. A diverse industrial sector has surpassed agriculture as the primary focus of economic activity and income. Encouraged by duty-free access to the US and by tax incentives, US firms have invested heavily in Puerto Rico since the 1950s. US minimum wage laws apply. Sugar production has lost out to dairy production and other livestock products as the main source of income in the agricultural sector. Tourism has traditionally been an important source of income for the island, with estimated arrivals of nearly 5.9 million tourists in 2007.
Puerto Ricans had a per capita GDP estimate of $18,400 for 2007. Federal transfer payments to Puerto Rico make up more than 20% of the island's personal income. By comparison, the poorest state, Mississippi, had a median level of $21,587, according to the U.S. Census Bureau's Current Population Survey, 2002 to 2004 Annual Social and Economic Supplements. Since 1952 the gap between Puerto Rico's per capita income and the national level has changed substantially — From one third the U.S. national average and roughly half that of the poorest state in 1952, to 10% of the poorest state in 2007. As of 2006, the unemployment rate was 11.7%. The U.S. state with the highest unemployment in October 2007 was Michigan, at 7.7%, and the U.S. average was 4.4%. On November 15, 2006 the Government of Puerto Rico implemented a 5.5% sales tax. An optional 1-1.5% municipal tax had been in effect since May 2006. Puerto Rico’s public debt has grown at a faster pace than the growth of its economy, reaching $46.7 billion in 2008. In January 2009, Governor Luis Fortuño enacted several measures aimed at eliminating the government's $3.3 billion deficit. The island unemployment rate is 12% as January of 2009.