Page 8 - CMB

A16 LOCAL
Saturday 10 March 2018

Initial Economic Improvement During the First Nine Months of 2017

ORANJESTAD - Today the sumer Confidence Index though the net foreign as-
Centrale Bank van Aruba improved slightly from the sets declined, they stayed
(CBA) publishes the State second to the third quarter. above the critical norms
of the Economy for the first Nevertheless, it stayed be- monitored by the Monetary
three quarters of 2017. This low the 2016 level as well as Policy Committee (MPC) of
publication provides a syn- in the pessimistic territory. the CBA. In summary, the
opsis of the local and in- Aruba’s trade deficit, as economy seemed to be
ternational economic de- reported by the CBS, grew on a rebound for the first
velopments of this period. in the first nine months of nine months of 2017. Nev-
The highlights here of are 2017. The total value of ertheless, caution remains
presented below, including import of goods expand- because of considerable
a summary of main eco- ed, due largely to a gain downside risks such as the
nomic indicators. in the imports of animal- sustainability of consump-
related goods, investment tion and investment, the
The Aruban economy goods, and mineral prod- weak financial position of
showed initial signs of im- ucts, while the value of the government, the down-
provement in the first three exports also rose but at a ward trend in the interna-
quarters of 2017. Tourism-re- lower pace. The balance tional reserves, and the
lated output strengthened of payments posted a defi- fragile political situation in
with substantial growth in cit in the first three quarters Venezuela. The complete
tourism receipts, improved of 2017, according to the publication is available on
hotel performance, a re- preliminary commercial the CBA’s website (www.
bound in U.S. arrivals as well vealed an overall upswing to have fully materialized. bank data available. This cbaruba.org).q
as increased cruise visitors. in the first three quarters Consumption strengthened deficit was due mainly to
Data for private investment of 2017 compared to the in the first three quarters of net outgoing transfers from
and private consumption same period of 2016. Both 2017, based upon avail- notified foreign accounts
point towards a positive the number and value of able indicators. Income held by residents, as well as
development, but caution construction permits ex- from consumption-related net outflows resulting from
is warranted with regard panded, while investment- taxes increased, possibly other capital and financial
to its sustainability. Further- related imports picked up. due to a rise in compli- account transactions. This
more, the domestic price On the other hand, antici- ance and tax arrears col- deficit was partially com-
level remained virtually flat. pated refinery-related in- lection. Furthermore, car pensated by a surplus on
Investment indicators re- vestments appeared not loans grew, while the Con- the current account. Al-