WILLEMSTAD - Curaçao's economy is currently experiencing robust short-term growth, but long-term stability will require significant reforms, according to the International Monetary Fund (IMF). The assessment comes after the IMF's annual Article IV consultation discussions, where the organization provided an outlook on the island's economic prospects.
The IMF forecasts a 47.1% increase in hotel capacity between 2023 and 2026, with new air connections expected to boost the number of tourists visiting the island. Tourism remains the primary engine driving Curaçao's economic growth. However, the IMF warns that this growth is likely to slow in the long term due to limited investments in sectors outside of tourism and a continued decline in the island's population.
The IMF is urging Curaçao to push forward with reforms in healthcare and the pension system to avoid potential financial risks in the future. These reforms are seen as essential for the island’s financial sustainability.
In response to the IMF’s evaluation, the Ministry of Finance highlighted that investments in sustainable energy and further development of the tourism sector are vital to maintaining economic growth and supporting Curaçao’s transition towards renewable energy sources.
The IMF’s recommendations reflect the need for Curaçao to diversify its economy and ensure that key sectors like healthcare and pensions are equipped to handle future challenges, while still leveraging its tourism boom for immediate gains.