WILLEMSTAD – Curaçao's manufacturing industry is showing signs of recovery and a willingness to invest, despite concerns about inflation and rising costs. This is according to the latest Manufacturing Survey 2024 conducted by the Central Bank of Curaçao and Sint Maarten (CBCS), which surveyed local manufacturing companies in August and September 2024.
The report indicates that more than half of the respondents expect their market position to improve in 2024 compared to 2023. None of the businesses surveyed predicted a decline in their market standing. However, companies are more cautious about the international market, with only a third forecasting growth there.
The manufacturing sector, which contributes approximately 2.7 percent of the Gross Domestic Product (GDP) according to the Central Bureau of Statistics, is dominated by small and medium-sized enterprises. Forty-three percent of the companies surveyed employ fewer than five people. Local manufacturers primarily produce furniture, food products, and metal parts.
Despite rising financing and transportation costs, the investment climate remains positive. Sixty-one percent of businesses stated their intention to invest, with most plans involving amounts below 500,000 guilders. Looking ahead to the next five years, nearly seventy percent of respondents expect to make further investments.
Concerns remain, however. Half of the businesses cited the handling of freight at ports and airports as the largest obstacle to a favorable business environment. High operational costs and bureaucratic hurdles were also frequently mentioned. Additionally, most companies expect inflation and transport costs to continue rising.