Kingdom of the Netherlands-Curaçao and Sint Maarten: 2024 Article IV Consultation Discussions-Press Release and Staff Report

International Monetary Fund

No 2024/296, IMF Staff Country Reports from International Monetary Fund

Abstract: The 2024 Article IV Consultation presents that Curaçao and Sint Maarten have continued to experience a vigorous post-pandemic recovery underpinned by strong stayover tourism, which is outperforming Caribbean peers. Headline inflation has declined rapidly led by international oil price developments, notwithstanding a recent uptick, while core inflation remains elevated. In both countries, current account deficits improved markedly from pandemic years but remain high. Fiscal positions remained strong and in compliance with the fiscal rule. Growth is expected to accelerate in 2024 before gradually converging to its potential over the medium term. Stayover tourism supported by fiscal expansion is projected to drive economic growth at a robust 4.5 percent in 2024 due to new airlifts and further expansion in hotel capacity. Both countries need more public investments and strategies to improve tourist experience and enhance tourism’s value added, including adequate infrastructure to allow for timely ground transportation and continued efforts to improve the quality of services provided.

Keywords: Sint Maarten team; en Sint Maarten; Curaçao team; IMF staff estimate; Curaçao mission; IT investment; Tourism; Labor markets; Caribbean; Global (search for similar items in EconPapers)
Pages: 141
Date: 2024-09-17
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