WILLEMSTAD – Curaçao’s economy grew by 5% in 2024, surpassing the 4.2% growth recorded in 2023, according to the June Economic Bulletin published by the Central Bank of Curaçao and Sint Maarten.
The growth was largely fueled by increased household spending, driven by lower prices, and a rise in business investments, though business spending was slightly lower than the previous year. The government also boosted investments in construction, transportation, and equipment, while cutting back on spending for wages and salaries.
Trade Deficit and Inflation
Foreign trade had a negative impact on the economy, as imports exceeded exports. However, inflation fell from 3.6% to 2.6%, thanks in large part to declining global oil prices, which lowered the cost of fuel and energy.
Key Sectors: Tourism and Construction
The strongest growth was observed in the hospitality, construction, and transport sectors. The tourism industry saw a significant rebound, with more tourists staying longer and more cruise ships visiting the island.
In construction, activity increased due to private investments in the hospitality, utility, and real estate sectors. However, growth in this sector slowed slightly as several large-scale projects neared completion.
Government Finances Improve
Public finances saw notable improvement in 2024, with the government reporting a budget surplus of 2.2% of GDP, up from just 0.2% the year before. The surplus was attributed to higher tax revenues resulting from the growing economy. While overall government spending also rose — particularly in subsidies, social benefits, and interest payments — revenue growth outpaced expenditures.
Public Debt Declines
Curaçao’s public debt dropped from 70.9% to 64.0% of GDP, mainly due to the repayment of external loans, including debts related to Girobank and COVID-19 financial aid. Domestic debt also decreased as the government cleared payment arrears.
The figures reflect a year of solid economic recovery for Curaçao, with improved fiscal discipline, declining inflation, and continued strength in key sectors like tourism and construction.
