AMSTERDAM - Aruba has taken the lead for the third consecutive year in the Caribbean Investment Climate Index (CICI). Curaçao has dropped from 4th to 7th place. But the most remarkable debut is that of Sint Maarten, securing the 2nd position.
Since 2021, the Economic Bureau Amsterdam (EBA) has been publishing the Caribbean Investment Climate Index. The CICI measures the attractiveness of the investment climate in 17 countries in the Caribbean region. Among all countries on the ranking, Aruba has shown the strongest recovery from the COVID-19 crisis. Its high level of prosperity, resilient economy, and relatively low government debt contribute to Sint Maarten having the second most attractive investment climate in the region. Curaçao and Haiti are the only countries that scored lower this year.
Curaçao
The report states that while other Caribbean countries are seeing improvements in their investment climate with the recovery from the COVID-19 crisis, this is not the case for Curaçao. As a result, Curaçao has dropped from the 4th to the 7th position in the ranking. Due to prolonged economic stagnation, and more recently, the recession resulting from the situation in Venezuela, Curaçao's level of prosperity is falling further behind. Additionally, the impact of the COVID-19 crisis on Curaçao has been significant, and the recovery is slow compared to many other Caribbean countries. Lastly, Curaçao's very low participation rate and high debt-to-GDP ratio are hindering the investment climate.
Everything indicates that Curaçao must act quickly to implement necessary reforms. The permit system needs an overhaul, population growth can be achieved by facilitating the attraction of foreign labor, and urgent reforms are required in healthcare and social security to structurally improve government finances.
