Central Bank: Economic Resilience in Uncertain Times for Curaçao and Sint Maarten
The June 2025 Economic Bulletin from the Centrale Bank van Curaçao en Sint Maarten (CBCS) presents a cautiously optimistic view of the economic trajectory of Curaçao and Sint Maarten, despite mounting global uncertainty. The report highlights solid growth in 2024, namely 5.0% in Curaçao and 3.0% in Sint Maarten, and outlines expectations for moderate but steady expansion over the 2025–2029 period, underpinned by private sector activity and fiscal improvements.
Growth Sustained, Though Slowing
Both countries have continued to grow after recovering from the COVID-19 pandemic, with tourism remaining the principal engine of economic activity. Curaçao's real GDP growth is projected to slow to 3.1% in 2025 and decline gradually to 2.0% by 2029. Sint Maarten follows a similar trend, with 2.4% growth expected in 2025 and a gradual tapering to 2.0% over the medium term. Despite downward revisions due to weaker global demand, domestic demand and tourism performance remain strong pillars.
GDP Growth (%)
Inflation and Fiscal Trends
Inflation is expected to ease in both jurisdictions, returning to around 2.0% by 2026. This is driven by expected declines in global oil prices and receding import price pressures. The fiscal outlook is notably strong. Curaçao’s current budget surplus is forecast to rise to 2.9% of GDP in 2025 and reach 3.6% by 2029, while Sint Maarten’s surplus is projected to climb from 1.1% in 2025 to 1.9% by 2029. Debt-to-GDP ratios are also trending downward, giving both countries greater fiscal room to invest in critical infrastructure.
Inflation (%)
Current Budget Balance (% GDP)
Key Challenges and Strategic Priorities
The bulletin doesn’t shy away from pressing challenges. Both economies face demographic pressures, strained healthcare and pension systems, climate vulnerability, and exposure to geopolitical risks like U.S. tariffs and energy price volatility. The CBCS calls for deeper investment in human capital, streamlined labor migration systems, and the effective implementation of climate adaptation plans.
Building Forward Strategically
Curaçao and Sint Maarten stand at a strategic inflection point. Their strong tourism base and improving fiscal health offer momentum, but long-term resilience will depend on their ability to execute reforms, diversify economic activity, and reduce external vulnerabilities. The June 2025 bulletin underscores the importance of sound policy, not just for managing today’s risks, but for building a more stable and sustainable future.
