Central Bank: Following three consecutive years of negative growth figures, the economy of Curaçao expanded marginally
WILLEMSTAD – In the annual report of the Central Bank of Curaçao and Sint Maarten, the President of the Bank, Emsley Tromp indicates that the Global economic growth decelerated slightly in 2015 due to a weak expansion in the advanced economies combined with a slowdown in the emerging market and developing economies. Growth in the advanced economies was driven by domestic demand supported by, among other things, improved labor market conditions, and lower oil prices. Meanwhile, growth slowed in the emerging market and developing economies as a result of weaker terms of trade, lower demand for the net exporting countries, and a transition to slower growth in China.
The President continued saying that against this background, both Curaçao and Sint Maarten recorded an economic expansion in 2015. Following three consecutive years of negative growth figures, the economy of Curaçao expanded marginally by 0.3% in 2015. The sharp decline in international oil prices caused a deflation of 0.5% in Curaçao, down from the 1.5% inflation rate recorded in 2014.
Real GDP growth in Curaçao was sustained by domestic demand, as both public and private spending rose in 2015. By contract, net foreign demand contributed negatively to growth as the decline in the export of goods and services offset the lower imports. The increase in private spending was the result of a rise in investments, particularly in the tourism and transportation sectors, mitigated by a drop in private consumption. Meanwhile, public demand rose as a result of more investments, in particular the construction of the new hospital and the improvement of the road infrastructure of Curaçao. By contract, public consumption shrank.
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