Published On: Mon, Jul 6th, 2015

Still lack of confidence in economy

WillemstadWILLEMSTAD – According to the Curaçao Business Association (VBC), the political and the precarious financial and socioeconomic developments taking place in Venezuela play an important role in the decision making process of potential investors in Curaçao.

In the first quarter of this year there has been a contraction of the Curaçao economy by 0.5 percent. This is evident from the latest results of the Short Term Economic Review of the Curaçao Chamber of Commerce.

The Financial Management Report (FMR) for the first quarter of 2015 reported a surplus in the budget. Although there has been a positive development of public finances and thus in principle compliance with the requirement of macroeconomic stability, it still does not work for (structural) economic growth to get off the ground, according to the VBC.

In the opinion of the VBC the lack of trust is the main reason why investors do not invest and that is why the economy is stagnant.

The lack of confidence, according to the association is due to a number of developments and factors, including the aforementioned developments in Venezuela, but also the political uncertainty and a non stimulating investment policy.

Other developments such as internal divisions within the coalition, integrity problems at administrative levels, proposals to devalue education levels, significantly increasing the local prices of petroleum products without an increase in the world price of oil, also, in accordance with the VBC, contributes to the deterioration of the living and investment environment. Investors are staying away from the island.

The Strategic Tourism Master Plan 2015-2020 which is currently on the table, according to VBC, offers all kinds of possibilities for the island. “It’s just a matter of performing together and united.”

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