WILLEMSTAD – Curaçao’s economy expanded by 5.5% in the second quarter of 2024, accelerating from 4.2% growth in the same period of 2023. This growth was primarily driven by the construction and tourism sectors, according to the latest data from the Central Bank of Curaçao and Sint Maarten (CBCS).
Construction Sector Leading the Way
Private and public investments played a significant role in boosting the construction sector. Major investments were directed toward commercial and residential projects, as well as renewable energy initiatives. The surge in construction activities increased the demand for imported building materials and spurred infrastructure projects, including roadworks.
The construction sector grew at a faster rate than anticipated, with domestic demand further bolstered by increased private sector consumption and investments.
Tourism’s Contribution
The tourism sector also made a substantial impact on economic growth. Revenues from international visitors in stayover tourism and transportation services rose significantly.
The number of stayover tourists increased, leading to higher earnings for hotels, restaurants, and transportation companies. Activities at the airport also grew, benefiting the broader transport sector.
Inflation and Employment
Inflation in Curaçao eased to 2.8% in the second quarter, down from 3.4% in the same period last year. This decline was attributed to stable energy prices and slower price increases for food and household goods.
Unemployment also decreased, falling from 11.7% in 2023 to 11.1% in the second quarter of 2024. This improvement was supported by job creation in the construction and tourism sectors.
Public Finances Show Surplus
Curaçao’s government finances recorded a surplus of 2.4% of GDP in the second quarter of 2024. This was due to higher tax revenues driven by economic growth and improved tax collection efforts.
Additionally, the national debt decreased to 62.9% of GDP, aided by lower foreign loans and increased economic activity.
Economic Outlook
The strong performance of the construction and tourism sectors underscores their pivotal role in driving Curaçao’s economic recovery and highlights the positive trajectory for 2024. With sustained growth, stable inflation, and declining unemployment, Curaçao appears poised for continued economic resilience.