WILLEMSTAD – Curaçao’s strongest advantage in the new Caribbean economic resilience ranking is its ability to borrow money at lower costs, but the island continues to face structural challenges related to income levels, imports and the labor market.
The Resilience Index Caribbean by Economisch Bureau Amsterdam places Curaçao sixth among 18 Caribbean countries, just behind Aruba. Curaçao scored 13.39 points, compared with Aruba’s 13.84 points.
While Aruba performs better economically and financially, Curaçao receives a stronger score in the financial category because the government can borrow at significantly lower interest rates.
Researchers link this advantage to Curaçao’s relationship with the Netherlands. Lower financing costs mean the government has more room to invest or respond during periods of economic stress.
However, the financial advantage is not enough to offset weaker results in other areas.
According to the index, Curaçao faces challenges including greater dependence on imports, weaker import coverage, lower income per capita and higher income inequality compared with Aruba.
The island’s limited agricultural sector also increases dependence on imported food and other goods. In addition, low labor participation and migration pressures affect the economy by reducing the available workforce and increasing pressure on working residents and public services.
Both Curaçao and Aruba share similar vulnerabilities. The islands perform relatively weakly in the areas of demographics and sustainability.
Both countries face challenges related to population development, labor participation and a limited role for renewable energy. Carbon emissions per capita remain relatively high, while sustainable energy still represents only a limited share of total energy production.
Neither island has significant natural resource revenues that could serve as a financial buffer during economic downturns.
The index also highlights some shared strengths. Curaçao and Aruba benefit from their location outside the main hurricane belt, reducing the risk of large-scale damage from tropical storms.
Both countries also score relatively well in institutional quality, including rule of law and internal stability. For Curaçao, however, the researchers used Aruba’s rule-of-law score because no separate international score was available and both countries fall under the same Joint Court of Justice.
The index is based on 26 indicators. Economic factors account for 38.5 percent of the final score, making them the most influential category.
The researchers stress that the results should not be interpreted as proof that Aruba or Curaçao are fully protected against future crises. Instead, the ranking shows that Aruba currently has stronger economic and fiscal fundamentals, while Curaçao benefits from more favorable financing conditions.