Published On: Tue, Aug 19th, 2014

Tromp: “Measures taken by government caused economic contraction”

Central BankWILLEMSTAD – The negative growth of the economy in Curaçao is the result of the actions of the government to get their own household expenses in order. This is according to Emsley Tromp, President of the Central Bank of Curaçao and Sint Maarten at the presentation of the Annual Report 2013.

Tromp was referring primarily to the Curaçaoan who have spent less because there was less purchasing power. "The reason for this was the measures taken by the government, including the increase in social security contributions," Tromp said.

The President of the bank does not dispute the measures taken by the government of Curacao to put public expenditures in order, but believes that the government has failed to investments or take measures to promote investment in the economy. Moreover, Curaçao suffers from non-economic factors such as the bureaucracy and the lack of political stability. According to Tromp this is not good for the confidence in the economy, especially from foreign investors.

In St. Maarten, the economic situation is better. The island has many problems with the public finances, but the economy is doing well. In Curaçao, the reverse is the case. There is a 0.8 percent economic contraction in Curaçao, but the household budget is more or less okay.

The new coin has the effigy of King Willem-Alexander, but the designation "Netherlands Antilles". Reason is the lack of a political decision to introduce the Caribbean guilder after 2010, when Curaçao and Sint Maarten became autonomous. Both countries have decided for a joint monetary union. The new currency differs from the old in form and alloy and is not accepted by vending machines.

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