- The executive board of the International Monetary Fund (IMF) concluded the 2025 Article IV consultation discussions with The Kingdom of the Netherlands—Curaçao and Sint Maarten on a lapse of time basis on September 2, 2025.
- In both islands, economic activity was strong, driven by tourism and construction, and the near-term outlook remains favourable. Consecutive surpluses helped create fiscal space, while public investments have slowly been ramped up. Fiscal accounts are expected to remain guided by the fiscal rule.
- Monetary policy is appropriately targeted towards maintaining the peg and the financial sector is broadly sound. Both countries need to continue advancing their structural reform agenda.
WASHINGTON, USA – The executive board of the International Monetary Fund (IMF) completed the Article IV Consultation Discussions for The Kingdom of the Netherlands—Curaçao and Sint Maarten and endorsed the staff appraisal without a meeting on a lapse-of-time basis. These consultation discussions form part of the Article IV consultation with the Kingdom of the Netherlands. The authorities have consented to the publication of the Staff Report prepared for this consultation.
Context: Reaping the post-pandemic tourism boom, Curaçao’s and Sint Maarten’s economies have been expanding strongly, driven by stay-over tourists and construction activity. Disinflation broadly continued, with some uptick in Sint Maarten throughout 2024. The Union’s current account deficit remained elevated as rising tourism receipts were offset by construction-related imports. In both countries, the fiscal position remained strong and in compliance with the fiscal rule. Progress on the landspakket, the structural reform package agreed with the Netherlands in 2020, has recently slowed, with notable exceptions around digitalising permits.
Curaçao outlook: Growth is projected to moderate to 4 percent in 2025, balancing domestic impulses and heightened global uncertainty. Further expansion of stayover tourism and construction activity will continue to support growth in 2025, along with fiscal expansion driven by higher public investments. Growth is expected to moderate to 2 percent over the medium term, given saturation in tourism and slower global demand, while public investments would be carried forward. Inflation is projected to stabilize at 2.5 percent in 2025 and gradually converge to 2 percent in the medium term. Primary fiscal balances would remain in surplus. The current account deficit would decline in the medium term but remain elevated.
Sint Maarten outlook: Growth is projected to remain robust in the near term as tourism capacity expands. Stay-over tourism will continue to drive growth in 2025 to 3.0 percent. Further expansion in hotel capacity will add to the island’s potential to sustain growth, partially counterbalancing the headwinds from slowing global demand. Over the medium term, growth is expected to converge to 2 percent as tourism is approaching carrying capacity. Inflation would remain broadly contained, at 3.3 percent in 2025, tapering off to 2 percent in the medium term. The fiscal position is expected to deteriorate temporarily on account of stronger investments. The current account balance is envisaged to gradually turn into a small surplus in the medium term.
Risks: Risks to the outlook are tilted to the downside. Global trade policy and investment shocks and a stronger-than-expected global slowdown would adversely impact tourism and could raise import prices on both islands. A stronger-than-expected execution of infrastructure projects could lift growth.
Monetary Union: Monetary policy is appropriately targeted towards maintaining the peg. The financial sector is broadly sound and systemic risks are contained, as banks are adequately capitalised and highly liquid.
Read the executive board assessment here.
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