WILLEMSTAD – Delays in the execution of government investment projects are reducing the contribution that public investment is making to Curaçao's economic growth, according to the Centrale Bank van Curaçao en Sint Maarten (CBCS).
The Central Bank says several planned investment projects are progressing more slowly than previously expected.
As a result, the CBCS has revised downward the contribution of public investment to Curaçao's economic growth in 2026.
The issue extends beyond this year's growth figures.
In its assessment of risks facing Curaçao and Sint Maarten, the CBCS specifically identifies delays in public investment caused by capacity constraints and administrative bottlenecks as a domestic economic risk.
According to the Bank, delays can limit the immediate contribution of government investment to economic growth while also postponing related private-sector projects.
If the problem persists, the CBCS warns that it could weaken investor confidence and restrict Curaçao's longer-term growth potential.
Improving the government's ability to execute projects is therefore considered important for sustaining economic development.
The warning is significant because Curaçao is expected to rely more heavily on public investment in 2027.
The CBCS expects the economy to grow by 2.3 percent next year, with public demand making a positive contribution because of higher government spending on goods and services and an increased public investment budget.
That means allocating more money for capital projects will not by itself guarantee the expected economic impact.
The projects must also move from the budget into actual execution.
The CBCS assessment therefore identifies implementation capacity as one of the factors that could determine whether Curaçao turns its planned public investments into actual economic activity.