WILLEMSTAD - The corona crisis and the resulting measures caused an economic contraction of 9.6 percent in the first quarter of this year. The Central Bank of Curaçao and Sint Maarten (CBCS) writes this in its quarterly report.
The government decided in March 2020 to take strict measures to prevent the spread of the corona virus. The lockdown on March 14 meant that many sectors had a hard time.
Inflation rose from 2.1 percent to 3.1 percent in the first quarter of 2020. CBCS cites the increase in excise duties and sales tax in September 2019 as a reason. The current budget surplus of the government of Curaçao decreased by NAf.45.1 million to NAf.20.1 million, due primarily to a decline in tax revenues. The drop in profit tax and wage tax was most pronounced, attributable to the stronger decline in economic activities. In contrast, sales tax revenues increased because of the changes introduced in September 2019 and improved compliance. Government expenditures increased slightly.
