WILLEMSTAD – According to the Central Bank, there are certain factors that could affect the economic perspectives of the island in 2019. One of the principal factors is Curaçao’s vulnerability towards Venezuela, which is one of the most important trading partners of the island.
The crisis in Venezuela continues to affect crucial economic activities like oil refining, tourism, harbor and the financial service. Also, the crisis increases the flow of refugees to the island and has caused a serious problem that the island cannot solve by itself.
Another factor that forms a risk for the economic growth is the future of the refinery. To guarantee this it is extremely important to find a strategic partner. This will give the island an economic boost. More delays in reaching an agreement with a potential strategic partner could have negative consequences especially for the private sector and local spending.
Local spending will decrease because financial institutions will be less likely to give loans and credit to companies that depend on the refinery.
Termination with correspondent banks could also have a negative effect in 2019. This will impede international transactions. It will lead to uncertainties on the macro economic level.
Another risk for the economic perspectives is the delay in execution of projects financed by private investment due to long administrative processes and bureaucracy.
Also, the delay in implementing structural measures as reforms on the labor and capital market, and the reduction of administrative barriers could have an negative impact on the economic growth.