Willemstad/Philipsburg – Economic growth across the monetary union continued in 2025, as outlined in the June 2026 Economic Bulletin of the Centrale Bank van Curaçao en Sint Maarten (CBCS). Both Curaçao and Sint Maarten recorded stronger real GDP growth compared to 2024. Real GDP in Curaçao expanded by 5.1%, slightly above the 5.0% growth recorded in 2024, while Sint Maarten’s economy grew by 3.5%, compared to 3.0% in 2024. Inflationary pressures eased across the monetary union, driven mainly by lower domestic energy prices following the decline in international crude oil prices.
Tourism-led growth and easing inflation
Tourism remained the main driver of economic growth in both countries. In Curaçao, higher stay over and cruise arrivals supported activity in the accommodation & food service activities, wholesale & retail trade, construction, and financial & insurance services sectors. Meanwhile, Sint Maarten’s growth was driven by stronger-than-expected cruise passenger arrivals, higher stay over arrivals, increased transport-related activities at both the airport and harbor, and ongoing commercial and residential construction projects. Although the construction sector remained an important contributor to growth in both countries, its contribution eased as several major projects approached completion and the airport reconstruction project in Sint Maarten had been completed by the end of 2024.
In Curaçao, inflation decelerated from 2.6% in 2024 to 2.0% in 2025, while Sint Maarten recorded a sharper decline from 3.6% to 0.9%. This was mainly due to lower electricity and fuel prices in both countries. However, food prices continued to rise, thereby tempering the overall decline in inflation across the monetary union.
Fiscal position improved in both countries
On the fiscal front, both Curaçao and Sint Maarten recorded an improvement in their current budget balances in 2025, although the underlying developments differed. In Curaçao, the current budget surplus increased from 1.0% of GDP in 2024 to 3.1% in 2025, reflecting higher government revenues combined with lower current expenditures. In Sint Maarten, the current budget also improved, moving from a broadly balanced position in 2024 to a surplus of 0.7% of GDP in 2025, as higher revenues outweighed the rise in spending.
Tax revenues in both countries were supported by stronger economic activity, particularly tourism, and continued efforts to improve tax compliance. Despite additional borrowing to finance capital investments, the public debt-to-GDP ratio declined in both countries in 2025, reflecting primarily the increase in nominal GDP. In Curaçao, the public debt-to-GDP ratio fell from 66% at the end
of 2024 to 61% at the end of 2025. In Sint Maarten, the ratio declined more moderately from 42% to 41%.
External position strengthened considerably
The external position of the monetary union strengthened markedly in 2025. The current account deficit narrowed from 17% of GDP in 2024 to 8% of GDP in 2025, driven mainly by a sharp increase in the net export of goods and services in both Curaçao and Sint Maarten. This improvement reflected higher foreign exchange earnings from tourism and related services, together with a lower import bill due primarily to lower oil prices and, in Sint Maarten, reduced construction related imports following the completion of the airport reconstruction project.
In line with the narrowing of the current account deficit, external financing into the monetary union declined to 10% of GDP, contributing to an improvement in the international investment position. External financing and net capital transfers from abroad more than covered the current account deficit, leading to a significant increase in gross official reserves of Cg 402.4 million in 2025. As a result, import coverage strengthened from 4.5 months at the end of 2024 to 4.9 months in December 2025, remaining well above the three-month benchmark.
The complete text of the June 2026 Economic Bulletin is available on the CBCS website at https://www.centralbank.cw/publications/economic-bulletins/2026.
