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Thursday 20 OcTOber 2022 locAl
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Buoyant tourism bolsters Aruban economy in the second quarter of 2022

Today, the Centrale Bank year. Most consumption-
van Aruba (CBA) published related indicators were
the State of the Economy positive, pointing to a rise in
report for the second quar- consumption. Two of these
ter of 2022. The publication indicators, being turnover
contains national, as well taxes (+33.1 percent) and
as international economic commodity taxes (+21.0
developments. The high- percent), soared due to a
lights of this publication are combination of the elevat-
presented below. ed level of tourism activity
and an uptick in domestic
In the second quarter of consumption (Chart 1). The
2022, the economy of Aru- increase in consumption
ba continued on a growth was noticeable in Aruba’s
track compared to the trade deficit, which wid-
same period in 2021. The ened by Afl. 263.5 million,
5.7 percent growth in real resulting from the surge in
GDP derived from the last- import (+31.3 percent) on
ing positive momentum account also of higher im-
in Aruba’s tourism sector. port prices.
Measured indicators for in-
vestment and consumption Furthermore, investment
demonstrated an increase indicators largely showed
in economic activity. improvement compared to
the first half of 2021. Among period inflation was primar- International transactions external debt in 2022. Con-
This persistent recovery was these indicators, the value ily attributed to gasoline settled through the bank- sequently, the level of inter-
connected to an increase of imported base metals prices (+2.9 percentage ing sector resulted in a sig- national reserves remained
in stay-over visitors and and derivated works grew points) and food and non- nificant net inflow of foreign adequate and well above
nights, which boosted ho- by a notable 39.3 percent alcoholic beverages (+1.2 exchange of Afl. 402.7 mil- the benchmarks monitored
tel operations (Table 1). In in the first half of 2022 (2021 percentage points). Addi- lion pushing the level of in- by the CBA.
the first half of 2022, Aruba Jan-Jun: -9.8 percent), while tionally, the end-of-period ternational reserves to Afl.
saw a 61.9 percent climb in the value of imported ma- core inflation, which ex- 3,286.8 million ( incl. gold In the first half of 2022,
stay-over visitors compared chinery and electrotechni- cludes food and energy, and excl. revaluation dif- based on available infor-
to the first half of 2021, and cal equipment surged by totaled 2.0 percent com- ferences) (Chart 2). Both mation, the Government of
reached 91.8 percent of 23.6 percent (2021 Jan-Jun: pared to -0.4 percent in the current and financial Aruba’s (GoA) fiscal deficit
2019 pre-COVID-level. A +6.2 percent). Additionally, June of 2021. The 12-month accounts of the balance dropped to Afl. 16.8 mil-
surge in U.S. arrivals (+46.5 in the first half of 2022, new average inflation rate of payments contributed lion, Afl. 313.3 million less
percent) fueled the high commercial and housing reached 3.4 percent at the to this outcome, record- than in the same period of
number of stay-over vis- mortgages demonstrated end of June 2022, continu- ing net foreign exchange 2021. This contraction was
its, along with growth in expansions in both value ing its upward path. None- inflows of, respectively, Afl. due to a decline in gov-
all markets. The increased and number compared to theless, the real exchange 315.0 million and Afl. 107.4 ernment expenditures (-Afl.
tourism demand caused the first half of 2021. rate for the Aruban flo- million. The significant rise 161.6 million) and a robust
a rise in occupied room rin vis-à-vis the U.S. dollar in international reserves increase in government
nights (+63.1 percent) and In line with international trended downwards dur- stemmed from a net in- revenues (+Afl. 151.2 mil-
other hotel sector indica- price developments, the ing the first half of 2022. This flow of tourism revenues lion). Despite the revenue
tors. Aside from stay-over consumer price index (CPI) downward trend is a result registered at commercial growth noted in the first half
visitors, cruise visitors also remained on its upward of consumer prices in the banks and government for- of 2022, it remained below
contributed to the recov- trend reaching 103.3 in United States rising faster eign borrowing via a loan the 2019-level (90.3 percent
ery, registering a growth of June of 2022. The 5.3 per- than those in Aruba. agreement with the Neth- of 2019 figures), indicating
16,481.0 percent year-on- cent climb in the end-of- erlands to finance maturing that there is still a gap to
bridge before reaching full
recovery.

In June 2022, government
debt reached Afl. 5,969.0
million, up from Afl. 5,655.6
million in December 2021.
An expansion of Afl. 243.5
million in foreign debt
caused this higher debt
stock. The debt-to-GDP
ratio increased by 0.6 per-
centage point and stood
at 101.7 percent in June
2022 compared to the end
of 2021.

The complete publication
is available on the CBA's
website. (https://www.
cbaruba.org/document/
state-of-the-economy).q