Local economy expands, contraction in Curacao

GREAT BAY – According to the Quarterly Bulletin of the Centrale Bank van Curaçao en Sint Maarten, economic developments in the monetary union were uneven in the first quarter of 2016. Curaçao recorded a real GDP contraction, while Sint Maarten’s economy expanded in real terms. Real GDP contracted in the first quarter of 2016 by 0.2% in Curaçao, while the economy of Sint Maarten expanded by 0.4%.

Meanwhile, the decline in international oil prices dampened inflationary pressures in both countries. Curaçao registered zero inflation, and Sint Maarten recorded deflation resulting in an average drop of 0.9% in consumer prices during the January– March period of 2016.

In Curaçao, private sector activities contracted during the first quarter of 2016 primarily because of lower production in the manufacturing, restaurants & hotels, and financial intermediation sectors. Output contracted in the manufacturing sector as a result of lower refining and trading activities by the Isla refinery. The disappointing performance of the restaurants & hotels sector reflected mainly a decline in the number of visitor nights, despite an increase in the number of stay-over visitors. Also, the number of cruise visitors dropped.

Source: Today SXM Local economy expands, contraction in Curacao