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In an environment of heightened global risks Actions needed to enhance inclusive growth and fiscal sustainability.

WILLEMSTAD/PHILIPSBURG – Curaçao and Sint Maarten have demonstrated resilience by recording a stronger recovery from the pandemic than initially anticipated. The countries maintained steady economic growth throughout 2024 and this momentum is expected to continue into 2025. However, significant global uncertainties, structural vulnerabilities, and ongoing fiscal pressures pose risks to the medium-term outlook. “To safeguard economic stability and promote sustainable and inclusive growth, both governments must prioritize critical public reforms, particularly in healthcare and social security, and bolster resilience to external shocks”, recommended President of the Centrale Bank van Curaçao and Sint Maarten, Richard Doornbosch, in the CBCS’ March 2025 Economic Bulletin.


Maintaining growth momentum in 2025
According to the Bank’s latest estimates, growth in the monetary union gathered pace in 2024, with real GDP growth rising to 5.5% in Curaçao while moderating slightly to 3.5% in 2024 in Sint Maarten. “The 2024 growth estimates for both countries are based on developments observed during the first three quarters of the year, driven by strong performances in tourism and construction. The latter was supported by increased private investment as well as public investment, particularly in infrastructure projects”, explained Doornbosch.
Looking ahead, growth is set to continue across the monetary union in 2025, albeit at a slower pace. “The Bank projects that real GDP will grow by 3.2% in Curaçao supported by steady private consumption and the continuation of ongoing and planned private and public investments. Meanwhile, Sint Maarten’s economy is expected to expand by 2.6%, driven by new significant private investment initiatives in the utilities sector and harbor infrastructure and strengthened private consumption resulting from lower inflationary pressures and higher wages of public servants”, he added.


Global uncertainties continue to shape the economic outlook
However, the CBCS president warned that the economic outlook remains exposed to substantial risks stemming from global and domestic developments, that are tilted to the downside. The likelihood of global risks materializing has intensified as the major changes in economic and trade policies by the U.S. administration could result in negative spillover effects for both the global economy and the monetary union. Such protectionist trade policies could provoke retaliatory actions from key trading partners, potentially escalating into a global trade war. This scenario may disrupt supply chains and cause sharp increases in international commodity prices, further fueling inflationary pressures in Curaçao and Sint Maarten.

In addition, the increased uncertainty surrounding the pace of monetary policy easing by major central banks, particularly the U.S. Federal reserve (Fed) and the possible expansion of sanctions on Venezuela by the U.S. administration pose further downside risks to the economic, financial, and social developments of the monetary union. By contrast, a potential de-escalation of geopolitical tensions in Eastern Europe, particularly due to ceasefire talks between the U.S., Russia, and Ukraine, could lead to a decline in global energy and commodity prices, lowering inflationary pressures in Curaçao and Sint Maarten.
In addition to global risks, Curaçao and Sint Maarten are exposed to domestic risks including climate change-related extreme weather events, delays in the execution of structural reforms and public investment programs, and increased concerns on the medium-term financial sustainability of the health care and social insurance systems of Curaçao and Sint Maarten.


Securing a sustainable growth path amid current challenges
According to Doornbosch, heightened global risks combined with domestic challenges such as the sustainability of public finances, underscore the need for targeted policy measures to tackle the vulnerability of small and open economies like Curaçao and Sint Maarten. “To reduce risks from tariffs and potential trade conflicts, businesses in Curaçao and Sint Maarten should diversify supply chains away from reliance on the U.S. market. The governments of Curaçao and Sint Maarten can support this by strengthening trade relations with alternative partners through, for example, collaborative advocacy with CARICOM. Furthermore, promoting local production in agriculture, renewable energy, and manufacturing could reduce external dependencies and contribute positively to both employment and growth”, recommended Doornbosch.
“To support a more sustainable and inclusive growth path, the governments of both countries must implement a comprehensive policy agenda that addresses labor market vulnerabilities, reduces red tape and the cost of doing business, and enhances labor productivity. One key action should be to diversify the economies of both countries by adding additional sectors, while continuing to strengthen and innovate within the tourism industry. In addition, a critical prerequisite for ensuring long-term debt sustainability in both Curaçao and Sint Maarten is the timely implementation of reforms in the health care and social security systems”, he added.
Lastly, prudent debt management and adherence to balanced-budget rules mandated by financial supervision frameworks will help build the necessary buffers to absorb external shocks. “By carefully implementing these recommendations, the monetary union can effectively navigate current challenges and secure a sustainable path for public finances and inclusive economic growth”, he concluded.
The complete text of the March 2025 Economic Bulletin is available on the CBCS website at
www.centralbank.cw/publications/economic-bulletins/2025.


Willemstad March 28, 2025
CENTRALE BANK VAN CURACAO EN SINT MAARTEN


Minister Brug Acknowledges Progress in SMMC and WIHCUA Discussions

PHILIPSBURG:--- The ongoing discussions between the St. Maarten Medical Center (SMMC) and the Windward Islands Healthcare Union and Associates (WIHCUA) have been a key topic this week. From the outset, Minister Brug maintained open communication with both parties to stay informed on the developments at SMMC.

After receiving an initial update, Minister Brug determined that it would be best to allow both parties to engage in discussions independently before any intervention. Upon following up, he was informed that SMMC and WIHCUA had met, addressed concerns, and reached a consensus. Both parties also confirmed that they will continue working towards the agreed-upon outcomes.

While Minister Brug’s intervention was not required, both SMMC and WIHCUA expressed appreciation for his concern and willingness to assist. The Minister recognizes the expertise and competence of both the WIHCUA and SMMC management and trusts that all matters will continue to progress in an orderly and constructive manner.

For any further developments, the public will be updated accordingly.

BES Islands Visit to the Committee of the First Chamber.

besfirstchamber29032025BES ISLANDS:--- On March 25th, the delegation of Bonaire, Sint Eustatius, and Saba continued their efforts to seek dialogue and inclusion in the process of amending the WOLBES and FINBES laws.
The common delegation was welcomed by the members of the Kingdom relations committee (Korel) of the First Chamber. During the meeting, it was emphasized, as in the other meetings, that the island’s delegation was present to address concerns about the decision-making process and to advocate for open dialogue, not conflict. The islands’ delegation reiterated that they were present as a collective unit. Given the State Secretary’s stance that there will be no dialogue with the island councils, it was crucial for the delegation to engage with the committee of the First Chamber on the importance of consultation.
A common delegation member opened with a statement referencing the WOLBES law and it’s memorandum of explanation. This law affirms that an evaluation of the law should be conducted collectively and with consent of all three islands.
The constitutional advisor, who accompanied the islands, provided insight on the supranational norm of the right of self-determination, anchored in treaties and human rights charters. Reference was also made to article 132a from the Constitution of the Netherlands, in which the formal legislator created the basis for the unique structure of the islands and positive differentiation.
The Senators of the First Chamber raised questions, including inquiries about objections to the proposed changes. A delegation representative clarified that the primary concern is not the content of the amendments but the lack of an inclusive process. The agreement list, which was established in collaboration with the former state secretary, is now subject to changes by the new State Secretary without consultation with those who created it.
The delegation clarified that the WOLBES and FINBES cannot be compared to any regular law, as these laws are the constitutional DNA of the islands. It is the democratic principle upheld by the Kingdom of the Netherlands that changes to the constitution of one of its countries, be it the Netherlands, Aruba, Curacao or St. Maarten, require approval of the democratic elected bodies. The island councils therefore do not agree to the constitutional framework of the three islands being amended without including the voices of all the representatives of the people.
The delegation reaffirmed their commitment to constructive dialogue and urged decision-makers to uphold the principles of transparency and collaboration in shaping the future governance of the islands. The plea was and remains to include us, not inform us.
The meeting was conducted in a spirit of collaboration, mutual respect, and fairness. The islands’ delegation looks back on a fruitful dialogue and remains committed to continuing their efforts to have the voices of Bonaire, St. Eustatius and Saba heard.

Dr. Thomas-Maccow Leads Roundtable on Suicide Prevention and Mental Health at the Parliament of St. Maarten.

tasheenamaccow29032025PHILIPSBURG:---  Dr. Thomas-Maccow, Director of Turning Point, addressed an urgent and growing issue in a roundtable discussion held by the Committee of Justice at the Parliament of St. Maarten on March 27 and 28, 2025. The focus of the discussion was suicide prevention and mental health, emphasizing the critical need for community-driven solutions.

Dr. Thomas-Maccow highlighted suicide as a global crisis, noting that over 700,000 people die by suicide each year, with alarming increases among young people. In Sint Maarten, suicide rates have also risen in recent years, exacerbated by social issues and mental health challenges. Dr. Thomas emphasized that the underlying causes of suicide often include depression, substance abuse, financial distress, and interpersonal struggles, urging immediate community intervention.

Dr. Thomas-Maccow proposed several strategies for addressing mental health concerns and preventing suicide, including:
• Teaching coping mechanisms and problem-solving skills in schools and workplaces
• Strengthening social-emotional education and resilience programs
• Promoting family support and parenting skills
• Creating programs to foster community wellness
• Encouraging open dialogues within families about mental health
She also stressed that preventing suicide requires collective effort, not just from professionals but from all members of society. Paying attention to warning signs, offering support, and creating a culture of care can be life-saving.

When discussing the intersection of mental health and substance misuse, Dr. Thomas noted that alcohol and drug use disorders are strongly linked to suicide risk. Substance abuse can lead to violent behavior, which increases the likelihood of suicidal actions. She emphasized the need for comprehensive treatment that addresses both mental health and substance misuse issues concurrently.

Dr. Thomas also emphasized a key point during the discussion: “While we can bring in experts to improve our mental health care, addressing our social issues must come first. Without tackling these underlying problems, we’re only addressing the symptoms, not the root causes. Returning individuals to the same environments after treatment often leads to relapse.” She further noted that this issue is not limited to mental health care but also extends to substance misuse treatment, where both must be addressed to break the cycle of recurring challenges.

In response to questions from Members of Parliament (MPs), Dr. Thomas elaborated on the impact of mental health issues on criminal behavior. She noted that individuals with untreated mental health disorders, especially when combined with substance abuse, are more likely to engage in criminal activity, including violent crimes. Early intervention, she argued, is key in preventing these individuals from committing crimes and instead guiding them toward treatment and recovery.

Dr. Thomas concluded by urging the government and community to address the root causes of mental health issues, particularly the social challenges that contribute to the crisis. Without addressing these fundamental issues, any efforts to improve mental health care and substance misuse treatment will only treat the symptoms, not the cause.

The panel discussions continue today, March 28, with MPs expressing strong support for initiatives to combat the growing mental health crisis in Sint Maarten.

TelEm Group network restoration update.

Pond Island:---  TelEm Group technicians are actively working to restore the company’s mobile voice and data networks following a system crash early Thursday afternoon.
At approximately 12:45 p.m. on Thursday, March 27, 2025, an alarm was raised when a node located in the Smitcoms building, Harbour View, stopped operating. The issue was traced to a faulty card, causing service interruptions for business customers and mobile radio users.
To restore services as quickly as possible, TelEm Group engineers and technicians to an alternative network path.
As of 7:00 PM, LTE voice and data services have been restored, and technicians are diligently working to restore all remaining networks fully. Full service is expected to be restored by midnight, March 27, 2025.
TelEm Group sincerely apologizes to our business and residential customers for any inconvenience caused by today’s outage and service interruption.
We are actively working on both short-term and long-term solutions to address these issues and improve overall service reliability.

We appreciate your patience and understanding as we continue to enhance our network infrastructure.
For further updates, please stay tuned to our official communication channels.
TelEm Group Management


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