WILLEMSTAD - The economic performance of businesses in Curaçao varied significantly across sectors in 2023. According to the Business Cycle Survey conducted by the Central Bureau of Statistics (CBS), the construction sector had a strong year, while the trade and hospitality sectors faced declining revenues.
Construction Sector Shows Growth
In the construction sector, 65% of businesses reported positive results, a seven-percentage-point increase compared to 2022. This made construction one of the best-performing sectors of the past year. However, challenges remain, as one-third of companies in this sector still faced declining results.
Hospitality Faces Decline
The hospitality sector experienced a sharp drop in revenue growth. Only 55% of businesses reported an increase in revenues, down from 86% in 2022. Meanwhile, the percentage of businesses with declining revenues surged from 6% to 26%. This downturn is attributed to economic stabilization following the post-pandemic peak in 2022.
Trade Sector Struggles
The trade sector also faced difficulties. The percentage of businesses reporting revenue growth decreased from 58% to 43%, while those experiencing declining revenues rose from 26% to 34%. Despite these challenges, the sector showed slight improvements in anticipated results for 2023.
Challenges for Small Businesses
The CBS noted disparities between small and large businesses. Larger companies (with more than 50 employees) were more likely to report positive revenue and performance outcomes than smaller businesses. Targeted support for small and medium-sized enterprises could help alleviate these challenges.
Policy Implications
The CBS emphasized that these sectoral differences are critical focus points for policymakers. Vulnerable sectors, such as hospitality, require additional support to sustain economic recovery and stability.