Published On: Mon, Jun 16th, 2014

IMF: “Curaçao must reform its economy”

PlasterkWILLEMSTAD - The International Monetary Fund (IMF) believes that Curacao has to reform its economy. Minister Ronald Plasterk of the Interior and Kingdom Relations indicates this in a letter to the Dutch Parliament. The results of the report by the IMF were presented at the end of May of this year.

Because Curacao is in the same monetary union as St. Maarten, the IMF took the two countries under the microscope. In both cases, the report was largely positive. “In Curaçao, the retirement age was increased, the civil service reduced, health care costs came more under control,” Plasterk writes. These are positive developments, he says.

Improvement

The strict policy of Central Bank of Curaçao and St. Maarten (CBCS) is to be praised. However, there is still a large trade deficit, with 'significant risk' as a consequence. Between 2011 and 2013 the Curaçao economy shrank by 0.5 percent. To structurally improve on a long term, according to the IMF, Curacao will need to work on improving the business and investment climate by reducing bureaucracy (red tape) and improving (flexible) the labor market. The IMF also recommends to further decrease the pension costs of the civil servants by reducing the number of government employees.

Click Tag(s) for Related Articles: