The economy contracted in 2020 because of the impacts of the COVID-19 pandemic, which led to border closure and restrictions on activity between March and June to contain the spread of the virus. While this successfully contained the spread of COVID-19 to 88 cases at year end with no related deaths, tourism was significantly affected. Construction activity, much of which was related to rebuilding after Hurricane Maria in 2017, slowed.

The public fiscal situation was already weakening prior to the pandemic due to the prior impact of a major hurricane. The need to increase expenditure to support health and social sector needs, combined with a dramatic fall in tax revenue from reduced economic activity, required an increase in public debt.