Published On: Wed, Sep 5th, 2018

Results Business survey 1st half 2018

WILLEMSTAD - The Central Bureau for Statistics publishes some of the results of the June 2018 Business Survey. The aim of this survey is to provide up-to-date information on business and economic parameters and developments on a regular basis, twice a year. In addition, it should provide insight into the expectations and opinions of the business owners.

Main results Business cycle 1st half 2018

- Just as in December 2017, nearly 35 percent of the companies approached indicated that there had been investment barriers. The shortage of financial resources is also the biggest investment obstacle in recent times. This percentage increased considerably from 18 to 26 percent of the companies.

- In the opinion of the business owners, confidence in the economy has diminished in comparison to December 2017. The share of companies that has this opinion about the economy has increased from 30 to 40 percent. The percentage of business owners who indicated that their trust has remained the same has decreased from 65 to 55 percent. The percentage that has indicated that it has improved over the past period has remained low at 4 percent.

- The percentage of companies that indicated their confidence in the future in June 2018 has decreased from 57 to 51 percent compared to December 2017. The share of companies that has indicated that they have no confidence in the future has also increased, from 19 to 27 percent. Confidence in the future has thus become less positive compared to December 2017.

- The opinion on the investment climate has also worsened in the first half of the year. This remains mostly moderate, in the opinion of 58 percent of the companies (62% in December 2017). More than 37 percent believes it bad (was 29%) and only 5 percent of the companies find the investment climate good (was 9%).

- 36% of the participating companies had to deal with an increase in turnover. The share of companies where turnover has decreased has increased by 9 percentage points to 58 percent.

- Since 2016, a start has been made with drawing up a business cycle index. This is based on the confidence in the future, the perception of the investment climate and the changes in turnover (turnover mutations). These are aggregated in the form of a composite index with 100 taken as the starting point. Since the formation of the country Curaçao at the end of 2010, the business cycle index shows a declining trend. Since mid-2014, recovery has taken place. At the end of 2017, this recovery did not continue (70%) and as of June 2018, it decreased to 64 percent.

Business cycle

The share of companies that expects to conclude the year 2018 with a positive operating result is 59 percent. This is 1 percentage point lower than the percentage of December 2017. More than 41 percent of the companies who responded to this survey reported a negative operating result, an increase of 1 percentage point. Unfortunately, a high percentage of companies is still unable to earn profits from their business. It should be noted that these percentages do not provide an insight into the size of the company results or in any bankruptcies.

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