WILLEMSTAD - The International Monetary Fund (IMF) says that Curaçao is recovering well from the pandemic, but that there are still many challenges on the island. IMF recently visited Curaçao and released its report on the findings on Tuesday.
One of the challenges identified by the IMF is the strong inflationary pressures resulting from the war in Ukraine. Inflation rose to 3.8 percent in 2021 and accelerated further in 2022. Although Curaçao is well on its way to recovery from the corona crisis, the war is clouding the outlook.
The reforms included in the Country Package will play a major role in addressing long-standing structural challenges, according to the IMF. Reforms of the health care and social security systems are also needed to relieve pressure on public finances and reduce fiscal risks.
According to the IMF, Curaçao is moving towards a more tourism-based economy, but the government could explore more opportunities to develop other sectors, especially in the field of green energy production.