KRALENDIJK - The economies of the six Caribbean islands of the Kingdom have grown modestly over the past fifteen years. Gross domestic product per capita is highest on Sint Eustatius and lowest on Curaçao and Sint Maarten. This emerges from figures published by Statistics Netherlands (CBS) covering the period since the constitutional reform in 2010.
On that date, the country of the Netherlands Antilles was dissolved. Curaçao, Aruba and Sint Maarten became autonomous countries within the Kingdom. Bonaire, Sint Eustatius and Saba became special municipalities of the Netherlands, collectively called Caribbean Netherlands.
Aruba and Curaçao largest economies
Aruba and Curaçao are the economic giants with a gross domestic product of nearly three billion and 2.3 billion dollars respectively in 2021. The other islands have much smaller economies.
However, GDP per capita is highest on Sint Eustatius at more than 33 thousand dollars. On Bonaire, Saba and Aruba this is comparable at around 25 thousand dollars. On Curaçao and Sint Maarten it is considerably lower at around 15 thousand dollars.
Modest growth
Economic growth since 2013 has been modest on most islands. Bonaire grew the strongest, while Sint Eustatius actually contracted. The other islands showed little difference in growth rates.
The year 2020 was a negative outlier, when the economy contracted on all islands due to the coronavirus pandemic and travel restrictions. The following year saw a strong recovery.
Notably, Sint Eustatius’ economy fluctuates strongly due to its dependence on a few large companies.
Tourism crucial
Tourism is economically one of the most important sectors on all islands. On Aruba, hospitality is the most important sector. Trade and business services are also stimulated by tourism.
On Curaçao, financial services are particularly important, accounting for almost a quarter of total economic value. This involves banks, insurance companies and other financial institutions.
Cruise tourism hit hard
For many islands, cruise ships are an important source of income. Sint Maarten has by far the most cruise passengers, with more than two million in peak years. Curaçao and Aruba follow with around 750 thousand passengers each in normal years.
The coronavirus crisis had a devastating effect on cruise tourism. In 2020 and 2021, hardly any cruise ships arrived. In 2023, passenger numbers finally approached pre-coronavirus levels again.
Prices rose most sharply on Curaçao
Inflation differs per island. On Curaçao, prices have risen most sharply since 2011 at 36.6 percent. This is slightly less than in European Netherlands at 39 percent. On Aruba, prices rose the least, at 13.4 percent.
In 2022, there was a clear inflation peak on all islands, ranging from 3.6 percent on Sint Maarten to 10 percent on Bonaire. Frequently cited causes are the recovery after the coronavirus pandemic and the Russian invasion of Ukraine.
Also in the first years after the constitutional transition, price increases were relatively high due to system changes, the switch to the US dollar on the BES islands, and international developments such as high oil prices.
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