Central Bank assumes 0.4 percent growth in 2015
WILLEMSTAD - The Central Bank of Curaçao and Sint Maarten (CBCS) takes into account an economic growth of 0.4 percent for Curaçao in 2015. In 2014, the island has experienced an economic contraction of 0.5 percent compared to 2013, according to the Central Bank in its document Economic Developments in 2014 and outlook 2015.
In 2015, the CBCS foresees that the growth of the world economy will strengthen, thanks to an acceleration of output growth in both developed countries and emerging economies and developing countries. It is expected that economic growth in two of the major trading partners of the island, the United States and the Netherlands will continue to strengthen in 2015, but that the economic contraction in Venezuela will continue further.
“With this information, the Central Banks states that the Curaçao economy is projected to grow by 0.4 percent in 2015. The economic recovery will be driven by private consumption and government spending,” indicates he CBCS in its report. The Central Bank expects that private consumption will increase as the disposable income of the lower level will rise as a result of the announced reduction of income tax rates. On the other hand, private investments will increase, according to the CBCS thanks to various new projects including the tourism and transport sectors. Government spending will rise on the other hand due to the construction of the new hospital and investments in the road network of the island.”