Published On: Fri, Sep 12th, 2014

Finance expects 1.5 percent growth in 2015

10616385_10201590758250226_8413960126768814119_nWILLEMSTAD - The Ministry of Finance expects an economic growth of 1.5 percent in 2015. This is stated in the Memorandum of Finance in the draft budget for 2015, which was sent to Parliament earlier this week.

The rate of 1.5 percent is a full percentage point higher than was projected by the Central Bank of Curaçao and Sint Maarten (CBCS) for the island, namely a half percent.

For this year Finance takes into account a projected growth of 0.3 percent. Same CBCS keeps however a contraction of -0.4 percent. The ministry bases its data on figures from the Central Statistical Office.

The figures cited in the government's budget shows that the Curaçao economy lags behind the global and regional economy. For 2014, the global economy will face a growth of 3.6 percent, while Latin America and the Caribbean will experience a growth of 2.5 percent, according to the projections of the World Economic Outlook of the International Monetary Fund (IMF) in their last publication in April this year. 2015 expects a growth in the world economy of 3.9 percent, while the region's economy will see a growth of 3.0 percent.

The draft budget, which was presented to Parliament, was closed with a zero balance. In 2015 and 2016, according to the Memorandum of Finance, there is a positive balance in the ordinary service (income minus expenses), while the capital account (investment budget) there is a shortage. In 2015, the surplus on ordinary service amounts to 127.4 million guilders while the capital account has a deficit of 127.4 million guilders. According to Finance in 2016 the surplus on ordinary service will rise to 162.7 million from the long-term budget and the deficit on the capital account will amount to 162.7 million. These figures are in accordance with the guidelines of the Committee for Financial Supervision (CFT), which expects a positive balance on the regular service, while a deficit in the capital account is permissible provided it fits the interest burden norm and the ordinary service remains in balance.

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