NEW YORK - The economy of Curaçao continues to recover strongly from the COVID-19 crisis, driven by a robust tourism sector, with a projected growth of 4.5 percent in 2024. However, the International Monetary Fund (IMF) warns of structural weaknesses, such as reliance on tourism and an aging population, that could pose long-term challenges. 

The anticipated growth of 4.5 percent is supported by new air connections and an expansion of hotel capacity, as well as fiscal expansion measures. Nonetheless, the IMF cautions that this growth may plateau over time. The tourism sector is nearing saturation points, while other sectors lag behind in investment and productivity. Inflation, which stood at 3.5 percent in 2023, is expected to decrease slightly to 3.2 percent in 2024, stabilizing around two percent in the long term. 

The IMF emphasizes that Curaçao must implement crucial reforms to achieve sustainable economic growth. “Curaçao's growth is impressive, but the economy needs to diversify to avoid over-reliance on tourism,” the report states. The fund also highlights aging as a significant challenge for the social security systems of both islands. “Reforms in healthcare and pension funds are urgently needed to prevent future deficits,” the IMF adds.