WILLEMSTAD.- The Central Bank foresees that the economy of Curaçao will experience a reduction again in 2018, and this time it will be 1.6%. This is in accordance with the perspectives that the Central Bank announced regarding the situation of Curaçao in 2018.
On the other hand, the Central Bank explained that global economic activities project an acceleration in 2019 of 3.9%, for reasons among others that the economies, some are progressing and others are advancing. But returning to Curaçao, it is estimated that by the end of this year, the economies of the United States and the Netherlands, which are the two most important trading partners, will have good benefits and that will help the growth of the Island’s economy.
Similar to three years ago when Venezuela was the third most important trading partner of Curaçao and now has been in a deep crisis.
The Central Bank says that the economy of Curaçao will see a reduction again in 2018 (1.6%), since it is projected that both domestic and external demand will fall. The drop in domestic demand will be attributed to fewer public and private sector expenditures. Private demand will decrease due to less private consumption. This is due to a labor market that is lacking in confidence. There are many companies particularly in telecommunications, transportation and the hotel sector, which have announced reductions in the number of their employees.
The Central Bank also calculates that its private investments will experience no growth. Investments will be made in the ship repair sector. Public demand is projected to contract as both consumption and public investments will fall. Imports will grow, reflecting investments in the ship repair sector and high oil prices. The growth in exports will mainly reflect inputs derived from the tourism sector, but will be mitigated due to a lower income of the refining sector.
The growth of tourism will come as a result of more tourists staying from the United States and Europe. And it is also expected that cruise tourism will increase more rapidly.
