MOST tables are empty at Walter Martin’s coffee shop in San Juan’s colonial district. His brow is furrowed with concern and glistens with sweat in the sweltering Caribbean morning.

    He’s turned off the air conditioning to lower his power bill. With fewer customers, he’s cut staff hours and tried to make up the lost income by raising some prices. But Puerto Rico’s entrenched economic crisis is leading people to either cut their personal spending to the basics or flee to the mainland to search for jobs, contributing to the struggles of those left on the island.

    “We’re making every single adjustment needed,” Martin said. “We have to make these decisions because if not...”

    He trailed off, hesitant to complete the sentence.

    Nearly 10 years into a deep economic slump, Puerto Rico is no closer to pulling out, and, in fact, is poised to plummet further. The unemployment rate is above 12 percent. Some 144,000 people left Puerto Rico between 2010 and 2013, and about a third of all people born in Puerto Rico now live in the United States. Schools and businesses have closed amid the exodus. The population of 3.5 million is expected to drop to 3 million by 2050.

    The government has tried to boost revenue by hiking the sales tax to 11.5 percent, higher than any U.S. state, and closing government offices. Its debt-burdened power utility already charges rates that on average are twice those of the mainland, and is under pressure from bondholders to raise them higher.

    A US$58 million bond payment due Saturday went unpaid. If defaults continue, analysts say Puerto Rico will face numerous lawsuits and increasingly limited access to markets, putting a recovery even more out of reach.

    Carmen Davila, a 65-year-old retired truck driver and window dresser, recently withdrew her money from the bank amid fears the government would shut down and seize it.(SD-Agencies)