On January 15, 2025, the Association of Dutch Caribbean Economists hosted a mini-seminar at the Central Bank of Curaçao and Sint Maarten (CBCS). CHATA had the privilege of representing the hospitality sector as part of the panel. The seminar brought together economic experts to discuss the outlook for 2024 and 2025 and to develop strategies for sustainable economic growth.
Economic insights
Central Bank of Aruba (CBA):
According to the CBA, Aruba’s real GDP growth is expected to reach 6.9% in 2024, driven by tourism exports and investments. However, growth will slow to 2.0% in 2025 due to reduced investment and export growth. This highlights the need for strategic collaboration and innovative solutions to ensure economic resilience.
Central Bank of Curaçao and Sint Maarten (CBCS):
- Global economic growth eased slightly from 3.3% in 2023 to 3.2% in 2024 and is projected to remain stable at 3.2% in 2025, driven mainly by strong performances in the United States and emerging economies in Asia.
- In the Caribbean, stay-over tourism in Curaçao rose by 23.5% through September 2024, an acceleration compared to 19.0% growth over the same period in 2023. Stay-over tourism in Sint Maarten increased by 5.7% but remains 24% below pre-Hurricane Irma levels in 2016.
The CBCS noted that the monetary union’s balance of payments improved in 2024, with the current account deficit narrowing to 15.4% of GDP. This was largely due to increased tourism revenues and higher net transfers from abroad. For 2025, the deficit is expected to decline further to 13.0% of GDP, with external financing projected to decrease to 7.7% of GDP by 2028.
Collaboration with the Netherlands and CARICOM
The seminar emphasized the importance of international and regional collaboration:
- Climate adaptation: The Netherlands provides technical assistance to develop strategies for extreme weather resilience.
- Access to financing: The Netherlands advocates for direct access to global climate funds for Curaçao and Sint Maarten.
- Debt relief: Frameworks are being developed to ease debt burdens during crises and accelerate recovery.
- Regional collaboration: CARICOM members share best practices and work together on disaster preparedness, climate adaptation, and public health.
Building resilient economies
Alongside international support, internal measures are crucial. Curaçao and Sint Maarten must:
- Build strong financial buffers and apply prudent fiscal management.
- Diversify trade relations to emerging markets in Latin America to reduce dependence on traditional partners like the United States and the Netherlands.
- Invest in renewable energy and local production capacities to reduce reliance on imports and mitigate exposure to global market volatility.
Sustainable future
With a record 700,000 stay-over tourists in December 2024 and a 19% increase in RevPAR compared to 2023, Curaçao tourism remains the most important driver of the economy. However, economic growth must never come at the expense of quality. Together with our partners, we continue to work toward a future where sustainability and progress go hand in hand.
