WILLEMSTAD – Curaçao's public debt declined sharply in 2025 as strong economic growth continued to improve the island's financial position, according to the latest Economic Bulletin published by the Central Bank of Curaçao and Sint Maarten (CBCS).
The report shows that Curaçao's government debt fell from 66 percent of gross domestic product (GDP) at the end of 2024 to approximately 61 percent by the end of 2025.
The decline reflects both continued economic expansion and healthier public finances. As the economy grows, the value of goods and services produced increases, allowing government debt to represent a smaller share of national output.
The Central Bank considers the reduction an important indicator of improving fiscal sustainability after several years of economic recovery following the COVID-19 pandemic.
Sint Maarten also experienced an improvement in its debt position, although the report notes that Curaçao recorded the larger decline during the year.
According to the CBCS, maintaining declining debt levels remains important because it provides governments with greater flexibility to respond to future economic downturns or unexpected crises.
The report cautions, however, that external risks—including geopolitical conflicts, rising energy prices and climate-related events—could quickly affect public finances if governments fail to maintain prudent fiscal policies.
The Central Bank therefore recommends that Curaçao continue using periods of strong economic growth to further reduce debt and build financial resilience for the future.