Published On: Fri, Jun 28th, 2013

In 2012 Curacao economy shrunk with 0.1 percent

WillemstadWILLEMSTAD – The first preliminary calculations concerning the economic development in Curaçao shows a slight decrease of 0.1 percent in 2012.

The percentages relate to the real developments, that is to say, that they have been corrected for price development. This is evident from the data that the Central Bureau of Statistics Curaçao (CBS) has announced.

Economic growth is calculated on the basis of the volume growth in the production and economic development, these data’s are still preliminary, because full details of all industries are not yet available.

Curacao is in an economic stagnation. This means a period of slow economic growth, with economic development, for example, around zero percent. The slow development on Curaçao is also strongly influenced by the inflation of 3.2 percent in 2012.

Economic Development

The growth of economic activity in 2012 has mainly taken place in the industry trade (3.4%), hotels and restaurants (4.9%), and transport and communications (4.2%).

The activities on the market have increased by an increase in imports of goods and services and the commercial activities of companies in 2012.

In the tourist area, the number of visitors from South America have seen the most increase, by more than 27 percent in 2012. Tourists from the Caribbean fell by 4 percent, while tourists from Europe increased by 3 percent. Despite the lower occupancy rate of the hotels there is a 70.4 percent increase in the stay over tourism on the island in 2012.

In the transport area, there was progress in both the port and airport activities. The air activity increased, due to an increase in the number of passengers and number of landings. The port also recorded positive results due to an increase in the number of visiting ships.

The financial services increased slightly by 0.5 percent, and this is due to the profitability of local banks.

The utility industry showed a decline in 2012. In the industry, there has been a growth in volume, but because of high production costs and prices, this brings down the real cause.

The activities in the construction industry, there was a reduction of more than 6 percent. This shows that large contracts were further decreased in 2012 for construction projects. Compared to the year 2011, the industry actually plummeted.

The business services sector also dropped by nearly 4 percent. The decrease is due to less development activities in the previous year.

World Economy

According to the "World Economic Outlook" of the International Monetary Fund was in 2012 the growth of the world economy 3.2 percent compared with 4.0 percent in 2011. The slower growth was mainly caused by emerging and developing economies, such as China and India which shows a growth of respectively 7.8 and 4.0 percent in 2012.

Of the developed or advanced economies such as the United States, the economy grew in 2012 by 2.2 percent, in the Euro zone, however, there was a decline of 0.6 percent.

The economic development of Latin America and the Caribbean is growing by 3.0 percent in 2012. The Caribbean region shows a growth of 2.4 percent in 2012. Economic development in Curaçao has gone down compared to the Caribbean region.

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