WILLEMSTAD – Curaçao's economy is expected to remain one of the stronger performers in the Caribbean in 2026, although growth is projected to slow as the post-pandemic tourism boom gradually stabilizes. According to the Centrale Bank van Curaçao en Sint Maarten (CBCS) Annual Report 2025, the island continues to benefit from strong tourism, rising investments, lower inflation and healthy public finances, but faces increasing risks from global geopolitical tensions and external economic developments.
The central bank estimates that Curaçao's real Gross Domestic Product (GDP) grew by 3.9 percent in 2025, following an impressive 5.0 percent expansion in 2024. Although economic growth is forecast to moderate further to 2.9 percent in 2026, the CBCS notes that this remains a solid performance by international standards.
According to the report, economic expansion will continue to be supported by both domestic demand and foreign demand. Private investment is expected to play a larger role as businesses continue expanding following several years of strong economic recovery, while lower inflation should improve household purchasing power and consumer spending.
Government investment and public consumption are also projected to contribute positively to economic activity.
Tourism remains the driving force
Tourism continues to be the backbone of Curaçao's economy.
The CBCS states that higher visitor arrivals remain the principal driver of economic growth across the monetary union, with tourism generating increased foreign exchange earnings while supporting hotels, restaurants, retail businesses, transportation companies and numerous service industries.
Higher tourism receipts have also helped improve Curaçao's external financial position.
The report notes that stronger exports generated by tourism, combined with lower oil import costs due to declining international fuel prices, significantly reduced the current account deficit. The deficit narrowed from 16.4 percent of GDP in 2024 to 9.2 percent in 2025 and is expected to fall further to 7.2 percent in 2026. At the same time, official foreign exchange reserves increased substantially.
Foreign reserves rose by more than Cg401 million during 2025 and are projected to grow by another Cg181.5 million in 2026. As a result, import coverage increased from 4.5 months in 2024 to 4.9 months in 2025 and is expected to reach 5.2 months next year, comfortably exceeding the international benchmark of three months.
Inflation continues to ease
Consumers are also expected to benefit from lower inflation.
According to the CBCS, inflation in Curaçao declined from 2.6 percent in 2024 to approximately 2.0 percent in 2025, largely because of lower international oil prices that reduced fuel and energy costs.
The central bank expects inflation to continue slowing during 2026, providing additional support for household spending and improving purchasing power after several years of elevated global inflation.
Government finances remain healthy
The report also paints a favorable picture of Curaçao's public finances.
The country's current budget surplus remained at 2.2 percent of GDP during 2025, while improved tax compliance and increased economic activity generated higher government revenues.
Meanwhile, Curaçao's public debt ratio continued to decline despite new borrowing for capital investment projects. Public debt fell to 63 percent of GDP in 2025 and is projected to decline further to 62.6 percent in 2026 as economic growth continues to outpace debt accumulation.
Risks remain
Despite the positive outlook, the CBCS cautions that Curaçao remains vulnerable to developments beyond its control.
The report identifies geopolitical conflicts, trade uncertainty, tighter international financial conditions and regional instability as the principal risks facing the economy.
Although the central bank concludes that the direct economic effects of the January 2026 U.S. intervention in Venezuela were limited, it warns that renewed instability could damage the Caribbean's reputation as a safe tourism destination and create migration pressures for neighboring islands.
Additional concerns include continuing conflicts in Ukraine and the Middle East, climate-related risks, delays in major investment projects, anti-money laundering challenges and increasing healthcare and social insurance costs.
The CBCS concludes that while Curaçao enters 2026 from a position of economic strength, maintaining that momentum will require continued fiscal discipline, investment and careful management of growing external risks.