The Annual Report 2016 of the Centrale Bank van Curacao en Sint Maarten has been published.
It covers the following topics:
1. Report of the President
2. International Economic Developments
3. General Economic Developments in the Monetary Union
4. Monetary Developments and Policy
5. Foreign Exchange Regulations
Report of the President
The global economy continued to recover in 2016, albeit at a less pronounced pace than in 2015. Growth moderated in the advanced economies, including the United States and the euro area, while the economic performance across emerging markets and developing economies was mixed. Meanwhile, the Latin American and Caribbean region recorded negative growth reflecting a deep recession in some countries including Argentina, Brazil, and Venezuela.
Some highlites from the Report of President include:
Amid these global developments, the monetary union of Curaçao and Sint Maarten recorded an economic contraction as real GDP dropped in both countries.
• In Curaçao, real GDP fell by 1.0% in 2016 after having expanded by 0.3% in 2015.
• Meanwhile, Sint Maarten recorded a real GDP contraction of 0.1% in 2016, following an expansion of 0.4% in 2015.
On the fiscal front, developments were mixed in the monetary union in 2016. While the public finances in Curaçao worsened in 2016 compared to 2015, Sint Maarten recorded a fiscal improvement. Based on the available data, the deficit on the current budget of the government of Curaçao widened by NAf.36.5 million to NAf.38.1 million in 2016 because expenditures rose at a faster pace than revenues.
The improvement in the public finances of Sint Maarten was the result of lower government expenditures combined with increased revenues. Consequently, Sint Maarten recorded a surplus on its current budget of NAf.26.4 million in 2016, a turnaround compared to the NAf.18.4 million deficit registered in 2015.
Gross official reserves of the monetary union grew by NAf.187.5 million in 2016, up from the increase of NAf.27.8 million in 2015, as the external financing received exceeded the current account deficit of the balance of payments. The average import coverage rose from 4.9 months in 2015 to 5.2 months in 2016 as a result of the increase in official reserves combined with a decline in imports.
The deficit on the current account widened by NAf.170.2 million in 2016 compared to 2015 to NAf.1,035.0 million. This deficit represents 13.8% of the monetary union’s GDP and is well above the benchmark of 5% of GDP generally considered sustainable for small and open economies.
The annual report can be downloaded under this button:
Number of pages 74 • Language English • Country Curacao and Sint Maarten
Source: Centrale Bank van Curacao en Sint Maarten
Tags: public finance and tax, finance, centrale bank van curacao en sint maarten, centrale bank, finance sint maarten, financien curacao, finance, report, rapport, curacao, sint maarten, st. maarten, compliance, government, government sint maarten, budget, budget st. maarten, begroting curacao, svb, szv, social security bank, social & health insurance, tax, belasting, economy, economie