The economic picture painted in two stories today regarding First Quarter data released by the Central Bank of Curaçao and St. Maarten (CBCS) is not exactly a pretty one. The need for diversification to reduce vulnerabilities was mentioned following a decline in the export of goods and services.
That this “disappointing performance” was mitigated by an increase in foreign exchange earnings due entirely to a rise in stay-over tourism in St. Maarten compared to the same period last year is good news, but a sharp reduction in the number of cruise passengers not so much, while overall visitor spending was said to be down. The less-than-positive general trend is also reflected by a drop in merchandise imports of the local wholesale and retail sectors.
Mind you, St. Maarten’s economy grew during the first three months of 2016, but by only 0.4 per cent. Curaçao actually saw a contraction of 0.2 per cent, so the monetary union as a whole didn’t do too great.
As indicated by the International Monetary Fund (IMF), structural measures are required by both countries to improve the business climate and attract more investment from abroad. Perhaps the address by Governor Eugene Holiday at Tuesday’s opening of a new parliamentary year with the William Marlin Cabinet’s policy statement could provide some intentions in that direction.
However, with just over two weeks to go before St. Maarten’s parliamentary election there is no guarantee any of those plans will be executed, because a completely different government might soon be in office. The parties and individual candidates on the September 26 ballot therefore would do well to come with concrete and realistic proposals on how to reverse the current economic slowdown.
