WILLEMSTAD – Curaçao's economy continues to grow, but households are not necessarily experiencing the full benefit because inflation is restricting their purchasing power, according to the Centrale Bank van Curaçao en Sint Maarten (CBCS).
In its September Monetary Policy Report, the Central Bank projects economic growth of 2.8 percent for Curaçao in 2026.
Private demand is expected to increase broadly in line with the economy, supported particularly by investments in tourism and residential construction.
But the CBCS makes an important distinction between investment and household consumption.
According to the Bank, growth in private consumption is being constrained by elevated inflation, which continues to weigh on household purchasing power.
The CBCS currently expects inflation in Curaçao to reach 2.5 percent in 2026 and 2.4 percent in 2027. Both forecasts have been increased by 0.1 percentage point since June.
International oil prices are a major reason for the revision.
For Curaçao, which imports much of what it consumes, higher international energy and transportation costs can eventually reach households through fuel, electricity, food and other imported products.
The CBCS identifies the continuing instability in the Middle East as one of the major external threats to Curaçao's outlook. Further escalation could increase fuel and import costs, add to inflation and further reduce household purchasing power and domestic demand.
The findings are particularly relevant as Curaçao's political debate increasingly focuses on whether strong economic performance is reaching ordinary residents.
The Central Bank's assessment indicates that economic growth and household prosperity should not automatically be treated as the same thing.
An economy can expand while higher prices absorb part of the improvement in household income.
For Curaçao families, therefore, the important question is not simply how quickly GDP is growing, but how much purchasing power remains after paying for basic necessities.