Kingdom of the Netherlands-Aruba: 2025 Article IV Consultation Discussions-Press Release; and Staff Report

International Monetary Fund

No 2025/315, IMF Staff Country Reports from International Monetary Fund

Abstract: The 2025 Article IV Consultation with Netherlands—Aruba discusses that the economy grew strongly over 2021–24, driven by post-pandemic tourism, with an improved fiscal position and a declining debt-to-gross domestic product ratio. Among its policy priorities, the government aims to boost purchasing power, lower living costs, and increase compensation allowances for pensioners. Policies should leverage favorable economic conditions to reduce public debt, create fiscal space to support policy goals, maintain financial stability, and boost medium-term growth. The adoption of the new Kingdom Act offers an opportunity to strengthen fiscal rules and public financial management, make further progress on debt reduction, supported by revenue mobilization and expenditure efficiency measures to create space to support policy goals. Further strengthening the medium-term fiscal framework and improving oversight of state-owned enterprises is essential. Priorities include promoting higher value-added tourism with high shared value for the population; fostering development of non-tourism sectors for economic diversification; strengthening formal labor markets to offset the effects of demographics; and building resilience to sea level rise.

Keywords: consultation discussion; fund holding; exchange rate arrangement; Aruba's currency; consumer price index; Credit; Anti-money laundering and combating the financing of terrorism (AML/CFT); Global; Caribbean (search for similar items in EconPapers)
Pages: 83
Date: 2025-12-01
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