WILLEMSTAD – The International Monetary Fund (IMF) officially concluded its annual Article IV mission to Curaçao today, highlighting the island’s strong post-pandemic economic recovery while urging continued structural reforms and data-driven policymaking to ensure long-term sustainability. 

The mission took place from June 18 to 25, 2025, and involved in-depth discussions between the IMF delegation and representatives from the Curaçao government, the Central Bank of Curaçao and Sint Maarten (CBCS), and various societal and institutional stakeholders. 

Solid Economic Growth, Lower Inflation 

In 2024, Curaçao posted robust economic growth of 5%, signaling a clear rebound from the COVID-19 crisis. The expansion was fueled by strong performance in the tourism, construction, and real estate sectors, alongside a notable rise in real disposable income and a drop in inflation to 2.6%. The IMF credits these improvements to prudent fiscal and economic policy but stresses that sustainable progress depends on deep-rooted reforms. 

For 2025, the IMF forecasts a healthy growth rate of 4%, supported by ongoing momentum in key industries. 

Reform Agenda Remains Critical 

The IMF mission urged the government to intensify structural reforms to reduce socioeconomic inequality and secure long-term financing of public services. Key recommendations include: 

Healthcare and pension system reform 

Introduction of a modern, fair tax system, including a value-added tax (VAT) 

Investments in education, labor participation, and digitalization 

Debt containment and strategic use of reserves 

In-Depth Policy Analyses 

This year’s mission also included five special studies on Curaçao’s economic environment: 

Tourism Footprint Analysis: Tourism now accounts for nearly one-third of GDP, yet income distribution has worsened, and tax burdens have shifted toward consumption. The IMF warns of rising inequality if the gains are not widely shared. 

Informal Employment Study: Despite growth, formal job creation lags. Many men work informally in tourism and construction, undermining social insurance and tax revenues. The IMF recommends measures to encourage formal employment. 

AOV Pension Optimization: In collaboration with the Ministry of Finance and the SVB, the IMF explored options for a sustainable and equitable increase in pension benefits, including income-based supplements and inflation indexing. 

Risk Assessment Matrix: The IMF identified geopolitical fragmentation, cyber threats, and housing bubbles as key vulnerabilities. The report advises building greater resilience against both domestic and external shocks. 

External Sector Analysis: Curaçao’s external economic position remains weaker than expected. A strong local currency and high imports (particularly in construction) have widened the current account deficit. 

Nowcasting Model: Together with local partners, the IMF developed a real-time economic monitoring model using electricity usage, tourism flows, and satellite imagery to enable faster policy responses. 

Government Praised for Reforms 

The IMF commended Curaçao for steps already taken, including the launch of an income-based pension supplement, investment in education and renewable energy, and ongoing efforts to modernize the tax system. 

These reforms align with the goals outlined in the country's “Landspakket” and are seen as crucial for reducing long-term vulnerabilities and boosting resilience.