WILLEMSTAD - The Curaçao economy contracted in the third quarter of 2018. This is reported by the Central Bank of Curaçao and Sint Maarten. Together the islands earned 1.7% less, while inflation rose to 3.1%.

The latter is mainly due to higher international oil prices. The decline of the Gross National Product was mainly caused by the problems at the Isla refinery and the sharp decline in crude oil from Venezuela.

Construction and trade

It is also doing less well in the construction sector. Especially because several large projects have been completed or are in their final stages.

The contraction in wholesale and retail trade is the result of a decline in domestic demand and fewer activities in the free zone. The increase in tourist spending could not make up for that.

Air and seaport

The transport, storage & communication sector also registers a decrease. This is the result of fewer activities at both the airport and the seaport. The negative result of the airport is the result of a decrease in the number of passengers handled and the number of commercial landings.

The poor performance of the seaport is the result of a sharp decline in the number of tankers that visited the port of Willemstad, related to the lower production of the refinery. The number of cruise ships and cargo ships that visited the port, on the other hand, is increasing. The number of container movements also records an increase.

Tourism

The activities in the restaurants & hotels and financial services sectors increased in the third quarter of 2018. The strong growth of the restaurants & hotels sector is caused by a sharp rise in the number of stay and cruise tourists. The number of overnight stays and the occupancy rate of hotels also increased.

The growth in the financial services sector is exclusively due to the international financial services that record an increase in wages & salaries and other operational costs. By contrast, local financial services have zero growth because net interest income remains unchanged.