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Thursday 25 augusT 2022 locAl
A10

The Aruban economy grew by an estimated 16.2 percent during

the first quarter of 2022

Today the Centrale Bank flow of Afl. 292.6 million in
van Aruba (CBA) published the period under review,
the State of the Economy which was partially offset
for the first quarter of 2022. by portfolio investment (net
This publication provides a outflow of Afl. 40.9 million
synopsis of this period's lo- associated with outgoing
cal and international eco- payments in connection
nomic developments. The with government bond re-
domestic highlights are payments) and foreign ac-
presented below, including counts (a net outflow of Afl.
a summary of leading eco- 38.6 million).
nomic indicators.
The government financial
During the first quarter of deficit narrowed, yet the
2022, the economy of Aru- government debt expand-
ba grew by an estimated ed
16.2 percent, when com- In the first quarter of 2022,
pared to the correspond- based upon available in-
ing quarter of 2021. This ex- ic recovery. Revenue from ing upwards resulted in a large inflow of formation, the government
pansion was mainly spurred turnover taxes (+33.3 per- Albeit at a relatively slower foreign exchange financial operations led to
by a strong rebound in the cent) and taxes on com- pace, inflation in Aruba has International transactions the financial deficit nar-
tourism sector. Aruba's modities (+30.4 percent), been trending upwards settled through the com- rowing to Afl. 52.0 million
year-on-year real GDP total value of merchandise since the beginning of mercial banks resulted in from Afl. 162.7 million. Total
(Gross Domestic Product) imports (+40.3 percent), 2021. Compared to March a significant net inflow of government revenue in-
growth has mainted its up- and the number of I-Pago 2021, the end of period foreign exchange of Afl. creased by Afl. 48.2 million,
ward trajectory since the transactions (+41.6 per- inflation stood at 4.0 per- 402.9 million during the first reaching Afl. 271.2 million
second quarter of 2021. cent) surged in response cent at the end of March three months of 2022, push- at the end of the first quar-
to the increased demand 2022. When measured as ing international reserves to ter of 2022. However, total
The surge in tourism ac- brought on by the buoyant the percentage change Afl. 3,287.8 million. Both the revenue still remained be-
tivities was reflected in a tourism performance. Fur- in the 12-month average current and the financial low the 2019.
jump in total stay-over visi- thermore, household water of the CPI (Consumer Price accounts of the balance of
tors and total visitor nights, consumption and employ- Index), inflation reached payments were positively First-quarter level (-10.4 per-
leading to buoyant de- ment showed accelerated 2.1 percent at the end of impacted, recording on cent). During the period
velopments in the tourism growth, while household March 2022. The real ex- balance a net inflow of Afl. under review, total gov-
services sector and total electricity consumption re- change rate of the Aruban 272.7 million in foreign ex- ernment expenditure con-
tourism revenue. Aruba re- bounded. florin vis-à-vis the U.S. dollar change (2021 Q1: Afl. 92.3 tracted by Afl. 63.5 million
ceived a total of 233,666 continued on a downward million surplus). to Afl. 319.7 million, mainly
visitors, an increase of 108.0 Alternatively, credit market trajectory in the first quarter because of contraction
percent compared to the developments pointed to of 2022, thereby improv- The inflows on the financial in transfers and subsidies
first quarter of 2021. Total sluggish consumption de- ing the competitive posi- account during the first and in transfers to General
visitor nights almost dou- mand, as witnessed in the tion of Aruba compared quarter of 2022 stemmed Health Insurance (AZV).
bled compared to the first respective drop of 3.6 per- to the United States. This mainly from a loan re-
quarter of 2021, reaching cent and 6.5 percent in per- improved competitive po- ceived from the Nether- At the end of the first quar-
1,828,141 nights. The higher sonal loans and car loans. sition resulted mainly from lands (registered as ‘other ter of 2022, the govern-
hotel occupancy rate of The Consumer Confidence the consumer prices in the investment’ in the Balance ment debt rose by Afl.
62.2 percent and a spike Index echoed the contrac- United States rising faster of Payments) to the Gov- 360.2 million, reaching Afl.
in the average daily rate tions witnessed in total out- than those in Aruba. In ernment of Aruba (GoA), 6,015.8 million, represent-
to US$ 355.30 led to a sig- standing consumer credit, March 2022, the 12-month in order to repay its matur- ing a growth of 6.4 percent
nificant increase of 161.7 as consumers were slightly average inflation in the ing external debt in 2022 when compared to com-
percent in the revenue per more pessimistic in the first United States amounted to as part of an agreement pared to December 2021.
available room during the quarter of 2022 compared 6.2 percent, against a 2.1 with the Government of An expansion of Afl 336.9
first quarter of 2022. Over to the same period of 2021. percent increase in Aruba. the Netherlands. The sub- million in foreign debt and
the same period, total tour- component ‘other invest- an enlargement of Afl. 23.3
ism revenue – as measured Inflation in Aruba is trend- International transactions ment’ resulted in a net in- million in domestic debt
by tourism credits and reg- caused the increase in
istered in the Balance of debt. The developments in
Payments – soared by 92.0 government debt resulted
percent to Afl. 874.8 million. in an estimated debt-to-
GDP ratio of 103.3 percent
Commensurately, con- at the end of the first quar-
sumption-related indicators ter of 2022. Thus, although
also improved, reflecting the liquidity support from
the continued economic the Netherlands facilitated
recovery. During the first short-term government fi-
quarter of 2022, almost all nancial operations and ob-
consumption-related indi- ligations, these additional
cators showed improve- loans further exacerbated
ment compared to the the government’s limited
same period of 2021, signi- fiscal space.q
fying a continued econom-