Page 42 - ARUBA BANK

A16 LOCAL
Tuesday 29 May 2018
Slow economic recovery in 2017

Today the Centrale Bank
van Aruba (CBA) publishes
the State of the Economy
2017. This publication pro-
vides a synopsis of the lo-
cal and international eco-
nomic developments of this
period. The highlights here-
of are presented below, in-
cluding a summary of main
economic indicators.

In 2017, Aruba’s economic
developments were di-
verse. After two consecu-
tive years of economic
contraction, a path to re-
covery, albeit tepid, was
commenced. An estimat-
ed real growth rate of 1.2
percent is below the Ca-
ribbean average though
comparable to peer coun-
tries like the Bahamas and
Barbados.
Tourism was, once again,
the main engine of the Aru-
ban economic growth. De-
spite a fall in the number of
visitors, Aruba experienced
a growth in income from
tourism emanating from
higher spending per tourist,
partially related to higher
hotel room prices. Also,
cruise tourism flourished. cluded in 2016. Neverthe- ance rates. Credit develop-
Other economic activities less, business confidence, ments were also indicative
contributed little to Aruba’s especially in the construc- of a restrained economic
foreign exchange earnings tion industry, displayed a climate. Total credit growth
as non-tourism exports col- remarkable improvement was limited and confined
lapsed to a marginal level during the course of 2017. mainly to housing mortgag-
due to the disappearance On the other hand, con- es. Consumer credit again
of the oil transit trade activi- sumer confidence dete- fell significantly during the
ties. riorated further, attributed course of 2017.
Investment and consump- mainly to a worsening in Government finances
tion remained subdued in consumers’ sentiments on weakened further during
2017. Several large new the governments’ future the first half year of 2017. A
projects, such as the com- financial position and re- slight improvement was no-
mencement of the Watty garding taking out loans or ticeable in the latter half of
Vos Boulevard, the 330 mortgages. Consumption the year, leading to a debt
room Embassy Suites ho- indicators, such as turnover ratio of 86.9 percent at the
tel project, and the airport tax receipts, excises, and end of 2017. Although the
hotel were insufficient to import duties, generally financial situation showed
compensate for several were positive, yet partly in- signs of improvement,
other hotel renovation and fluenced by tourism expen- the fundamentals remain
enlargement projects con- ditures and higher compli- weak.

Lastly, Aruba’s level of net exchange) earning capac-
foreign assets declined ity of the economy.q
by 3.6 percent in 2017. Al-
though still well above the
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us on
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remains a matter of con-
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