Published On: Thu, Jul 16th, 2015

Central Bank: “Economy not doing well”

Central BankWILLEMSTAD – 2014 was the third consecutive year in which Curaçao had recorded a negative economic growth. This is according to the President of the Central Bank, Emsley Tromp during a press conference held recently. The Central Bank of Curaçao and Sint Maarten (CBCS) expects that 2015 will also close with a contraction of 0.1 percent and hopes for a small growth of 0.3 percent for 2016.

Tromp indicated that the real gross domestic product (GDP) grew by 1.5 percent in St. Maarten, while an economic contraction of 1.1 percent was registered in Curaçao.

Inflationary pressures rose in Curacao from 1.3 percent in 2013 to 1.5 percent in 2014. This increase was primarily due to higher local food prices.

The disappointing economic performance of Curaçao was mainly due to a decline in domestic demand. He said that the reduced consumer spending is in line with the decrease in the import duties collected and the decline in consumer lending. Both private and public investments declined. Government consumption fell due to less spending on goods and services.

Tromp said during the announcement of the annual results of 2014 that the arrangement to borrow cheaply is a mantle to cover the problems of the island. The financial situation seems better than it actually is, because of the opportunity the government has to borrow cheaply. The economic situation remains worrying. It has been so for three years now. Not only the debts are high, but as long as the consensus laws remain in place, which means that we can borrow cheaply, we will not feel it.

Photo credit: Y. Cooper

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