Country Report Curaçao 4th Quarter 2022

Outlook for 2023-24: External sector

We forecast that the structurally large current-account deficit will narrow from an estimated 15.5% of GDP in 2022 to 15.1% of GDP in 2023. This is based on the assumption that a sharp rise in tourism income will offset elevated food and fuel prices amid ongoing supply-chain disruptions caused by Russia's invasion of Ukraine, and that commodity prices will soften. As at end-August official reserves for the currency union with Sint Maarten stood at a comfortable Naf5.2bn (US$2.9bn, or 86.2% of GDP), equivalent to 5.2 months of import cover, with foreign-exchange reserves at Naf2.6bn.

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