Country Report Curaçao 3rd Quarter 2021

Outlook for 2021-22: External sector

The structurally large current-account deficit will narrow over the forecast period, to an average of 23.2% of GDP, after peaking at an estimated 24.8% of GDP in 2020 owing to a sharp downturn in the tourism sector. The narrowing of the current-account deficit will be modest in 2021, as a forecast rise in oil prices will lift the import bill and partly offset moderate export growth, and the services surplus will begin to widen gradually, to 9.6% of GDP by 2022, after falling in 2020 to 8.7% of GDP (from 15.3% of GDP the previous year). Overall, the current-account deficit will narrow to 24% of GDP in 2021 and 22.3% of GDP in 2022. In March official reserves for the currency union with Sint Maarten stood at Naf4.2bn (US$2.3bn), of which foreign-exchange reserves totalled Naf3bn.

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