The Worldwide Financial Fund (IMF) says Curaçao and Sint Maarten are persevering with to reap the advantages of a post-pandemic tourism increase, with each economies increasing strongly on the again of stayover arrivals and development exercise.
– Commercial –
In its 2025 Article IV session, the IMF famous that disinflation has broadly continued, although Sint Maarten skilled a slight uptick in costs throughout 2024. The Fund added that whereas tourism receipts have surged, they’ve been offset by construction-related imports, leaving the union’s present account deficit elevated.
Regardless of this, fiscal positions in each nations stay robust and compliant with established guidelines. Nevertheless, the IMF noticed that progress on the landspakket — the structural reform package deal agreed with the Netherlands in 2020 — has slowed, except advances in digitalizing permits.
Curaçao Outlook
The IMF tasks Curaçao’s development to reasonable to 4% in 2025, supported by continued tourism growth, development, and better public funding. Over the medium time period, development is predicted to sluggish to 2% resulting from tourism saturation and weaker international demand.
Inflation is forecast to stabilize at 2.5% in 2025 earlier than easing to 2% over time. Fiscal balances are anticipated to stay in surplus, whereas the present account deficit would cut however keep elevated.
Sint Maarten Outlook
Progress in Sint Maarten is predicted to stay strong, with the IMF projecting a 3% growth in 2025 as lodge capability continues to extend. Over the medium time period, development is anticipated to converge to 2% because the island reaches its tourism carrying capability.
Inflation is forecast at 3.3% in 2025, truly fizzling out to 2% thereafter. The IMF cautioned that Sint Maarten’s fiscal place may deteriorate briefly resulting from greater funding spending, although its present account steadiness is predicted to progressively shift right into a small surplus.
Dangers and Stability
The IMF warned that dangers are tilted to the draw back, pointing to potential shocks in international commerce and funding, in addition to a sharper-than-expected international slowdown, which may hit tourism and lift import prices. Conversely, stronger execution of infrastructure tasks may present an upside increase.
The Fund famous that financial coverage stays appropriately centered on sustaining the foreign money peg, whereas the monetary sector is broadly sound, with banks adequately capitalized and extremely liquid.
