Curaçao is experiencing economic growth. Tourism continues to expand, construction activity is increasing, and macroeconomic indicators point to progress. But for many ordinary people, daily reality tells a very different story. The key question remains: if the economy is growing, why are so many families still struggling to make it to the end of the month?
According to recent figures, nearly one in three households in Curaçao lives in poverty. At the same time, the prices of food, fuel, water, electricity, and housing continue to rise. Curaçao is a small, open economy that depends heavily on imports. When international prices increase, the impact is felt immediately in the pockets of the people.
The problem is not limited to the unemployed. Many people work every day and still cannot cover their basic expenses. The minimum wage remains far below the actual cost of living. Many jobs in the service and tourism sectors pay low wages, while living expenses continue to climb.
The majority of the population earns no more than 3,000 guilders per month. With an income at that level, it becomes almost impossible to cover rent or mortgage payments, food, transportation, water, electricity, children’s schooling, and medical expenses all at the same time. This reality creates stress, debt, and financial insecurity in many households.
One of the groups feeling the strongest pressure is the elderly. Curaçao is undergoing a demographic shift, with an aging population growing every year. More pensioners are becoming dependent solely on AOV. But the current AOV payment remains far below the actual cost of living. Many elderly people are forced to choose between buying medicine or buying food.
At the same time, the social assistance system remains insufficient. Welfare support and other social benefits have not kept pace with today’s economic realities. The social minimum—the amount a person needs to live with dignity—is significantly higher than the income many people currently receive, and higher than the current minimum wage, AOV, and welfare payments.
What makes the situation even more serious is that the population does not feel the effects of economic growth. Tourism generates millions of guilders, new hotels are being built, and major projects continue to rise. But the benefits are not reaching the average citizen.
Without structural and sustainable policy measures, poverty will continue to grow. Curaçao needs a serious plan focused on raising the minimum wage, increasing AOV and welfare support for those who genuinely need it, controlling the prices of essential goods, strengthening social protection, and ensuring economic growth benefits the broader population—not just a small group.
Economic growth must translate into a better quality of life for the people. Otherwise, the figures showing economic growth will remain nothing more than numbers on paper, while the people continue struggling to survive.
Luigi A. Faneyte holds expertise in economics, finance, auditing, and public policy. He is a former controller at the General Audit Chamber of Curaçao and currently collaborates with the PAR faction in the Curaçao Parliament.