GREAT BAY--St. Maarten recorded continued economic growth, a sharp decline in inflation and an improved fiscal position in 2025, according to the Centrale Bank van Curaçao en St. Maarten’s Annual Report 2025.
The CBCS reported that St. Maarten’s real gross domestic product grew by 3.4 per cent in 2025, compared with 3.0 per cent in 2024. Economic activity across the monetary union was driven primarily by tourism, supported by domestic demand and net foreign demand. Inflation in St. Maarten was estimated at 1.6 per cent, down from 3.6 per cent in 2024, largely due to lower fuel and energy prices.
Economic growth is projected to moderate to 2.7 per cent in 2026. The CBCS expects private real estate investment, including major hotel projects, higher government consumption and investment, and continued tourism activity to support the economy. Growth in tourism exports is projected to remain slightly higher than the increase in merchandise imports associated with domestic and visitor spending.
The country’s current budget balance improved from a balanced position in 2024 to a surplus equivalent to 1.1 per cent of GDP in 2025. According to the Bank, increased economic activity and measures to improve tax compliance contributed to higher tax revenues. St. Maarten’s public debt-to-GDP ratio also declined to 41.2 per cent in 2025 and is projected to fall further to 40.9 per cent in 2026, despite additional borrowing for capital investments.
The CBCS cautioned that the economic outlook remained exposed to external and domestic risks. These include global trade uncertainty, tighter financial conditions, geopolitical conflicts, investment delays, deficiencies in the fight against money laundering and terrorist financing, rising healthcare and social insurance costs, and climate-related shocks, particularly hurricanes affecting St. Maarten.
The report also addressed the proposed Deposit Guarantee Scheme for St. Maarten. The Minister of Finance received the required national decree and ministerial regulation in February 2025, after which the legislation was placed under review by Legal Affairs and Legislation. The CBCS said the scheme was expected to be approved and enacted during 2026. Preparations for a public awareness campaign had also begun.
In the area of financial stability, the CBCS launched the Real Estate Market St. Maarten Dashboard in May 2025. Developed with Kadaster St. Maarten, the Property Price Index collects and analyses real estate information to assist in detecting potential systemic risks in the property market at an early stage.
The Bank also intensified its supervision of financial institutions in St. Maarten. Banks, insurance companies, a credit union and money transfer companies were assessed on beneficial ownership identification, transaction monitoring and sanctions screening. A separate review examined whether institutions were complying with Systematic AML/CFT/CFP Risk Assessment requirements, identifying both effective practices and deficiencies requiring further attention.
The CBCS warned that St. Maarten and Curaçao must demonstrate progress in addressing recommendations from their Caribbean Financial Action Task Force evaluations to avoid being placed under increased monitoring. Progress will be assessed periodically during a three-year follow-up period.
Mullet Bay remained a major component of the ongoing Ennia resolution. The appraisal required for the pending court proceedings was not completed in 2025 and was moved into 2026. The CBCS said significant steps were taken to address legal complexities surrounding the property and envisaged commissioning a master plan during 2026 to support a possible sale. Proceeds from the eventual sale or development are intended to benefit Ennia policyholders.
Under the Ennia resolution agreement, the Government of St. Maarten is scheduled to contribute approximately Cg 2.1 million annually to the Ennia Resolution Fund for 30 years, beginning in 2027. The CBCS reported that Ennia’s restructured insurance companies had a successful first year and that policyholders received their payments on time during 2025.
The report further stated that St. Maarten Harbour Finance N.V. complied with all financial obligations connected to its outstanding bond during 2025, while its debt-service coverage ratio remained above the required minimum. The CBCS concluded that no impairment or provision for bad debt was necessary.
St. Maarten’s share of the CBCS’s Cg 66.85 million profit for 2025 amounted to Cg 14.85 million. Of that amount, Cg 973,500 was designated as the country’s portion of the CBCS contribution to the Ennia Resolution Fund.
The Bank also expanded its local research and financial education activities. Its 2025 research agenda included a study on foreign direct investment inflows into St. Maarten, while research and balance-of-payments statistics symposia were held on the island. The CBCS also supported Islandpreneur in delivering a three-day financial education training aimed at strengthening budgeting and financial awareness within the community.
The CBCS also reported that its 2025 research agenda included a study of foreign direct investment inflows into St. Maarten, although the annual report did not disclose the study’s findings or investment figures. The Bank expects private real estate investment, including major hotel projects, to support economic growth in 2026. While the report contains no specific data on household mortgage lending, it noted the launch of a property-price dashboard with Kadaster St. Maarten to monitor developments and potential risks in the local real estate market.
