Page 16 - aruba-today-20190503

A16 LOCAL
Friday 3 May 2019

Economic growth continues but increasing risks

ORANJESTAD―Today the The business perception in- throughout the first three
Centrale Bank van Aruba dex (BPI) was relative pes- quarters of 2018. However,
(CBA) publishes the State simistic in the third quarter the buffer between the
of the Economy of the first of 2018. benchmark and the cov-
three quarters of 2018. This erage ratio was steadily
publication provides a syn- The 12-month average CPI falling from 2.7 months in
opsis of the local and in- inflation stood at 2.3 per- January 2017 to 1.8 months
ternational economic de- cent in September 2018 as in September 2018. Domes-
velopments of this period. the effects of higher gaso- tic credit extended to the
The domestic highlights are line and food prices were private sector by the bank-
presented below, including room rate (ADR) and the private consumption. further amplified by a tight- ing sector increased to Afl.
a summary of main eco- revenue per available Investment indicators also ening of fiscal policy. The 3,215.7 million at the end
nomic indicators. room (RevPAR) improved provided divergent pat- introduction of the BAVP of September 2018, an in-
significantly (+11.5 percent terns. Both the number as and rise of the BAZV rate crease of 2.6 percent com-
In the first nine months of and +11.7 percent, respec- well as the value of grant- by 1.0 percentage point pared to December 2017,
2018, Aruba’s economy tively). Tourism credits, re- ed construction permits to 3.0 percent had an up- the result of an expansion
continued to perform bet- ported by the commercial decreased. This develop- ward effect on prices. Core in housing mortgages (+6.1
ter than in 2017. The tourism banks, resulted in an in- ment was attributed mostly inflation was 1.2 percent in percent) and business
sector did well in the first crease of 9.6 percent year- to two large tourism-relat- September 2018. For the loans (1.8 percent), while a
nine months of 2018. The to-date September 2018. ed projects for which build- first time in three years, the contraction was registered
number of stay-over visitors Consumption indicators ing permits were granted real exchange rate of the for consumer credit (−3.4
grew by 1.5 percent, while showed mixed results in the in 2017; no such permits for florin vis-à-vis the US dollar percent).
visitor nights recorded a first nine months of 2018. projects of that scale had increased in the third quar- The fiscal deficit (cash ba-
similar result (+1.6 percent). Higher revenues were ob- been issued in 2018. How- ter of 2018. This means that sis) stood at Afl. 41.2 mil-
As in previous quarters, the served from the turnover ever, the two large projects Aruba’s competitive posi- lion, an improvement of
U.S. market was the key tax (+1.8 percent includ- led to substantial invest- tion deteriorated relative Afl. 99.9 million compared
driver for this favorable out- ing a correction for the rise ments in 2018. Total volume to the United States. to the same period of 2017.
come. The hotel sector re- in tariffs), as well as import of cement imports grew The money supply expand- This outcome was driven
ported a solid performance duties (+14.3 percent). Out- significantly in the first three ed during the first three by an increase in both tax
in the first nine months of standing consumer credit quarters (+43.9 percent) quarters of 2018 by 3.2 per- and non-tax revenues, and
2018. While average room by the commercial banks of the year, while the total cent to Afl. 4,373.8 million. contracting government
occupancy faced a minor was 3.4 percent lower in amount of both household The net foreign assets grew expenditures. Total gov-
increment of 0.2 percent- September 2018 com- and commercial mortgag- by Afl. 39.7 million, mean- ernment debt reached Afl.
age point to 85.6 percent, pared to December 2017, es compared to December ing that reserves remained 4,389.3 million, expanding
both the average daily indicating a downturn in 2017 increased steadily. at an adequate level by Afl. 230.4 million.q

Aruba to Me

Have a look at
ORANJESTAD – We would like
to portrait you! By inviting you Annabell Nikole. She send us some
to send us your favorite va- great picture and wrote:
cation picture while enjoying
our Happy Island. Complete
the sentence: Aruba to me is “Aruba to me is….. All about
……. Send your picture with the Smiles!
that text (including your name
and where you are from) to:
news@arubatoday.com and My name is Annabell Nikole. I am from New
we will publish your vacation Hampshire. This is my 4th trip to Aruba and
memory. Isn’t that a special staying at my “Home Away From Home” the
way to keep your best mo- Divi Phoenix. What does Aruba mean to me
ments alive? Please do note: and my family? I have been welcomed with
By submitting photos, text open arms from everyone we have met and
or any other materials, you have accomplished my mission which is to
give permission to the Aruba get smiles especially from those who may not
Today Newspaper, Carib- have a reason to smile. We have visited the
bean Speed Printers and any hospital and visited a few sick children, we
of its affiliated companies to have been invited to local homes to meet
use said materials, as well as elderly parents, restaurants and of course our
names, likeness, etc. for pro- favorite jewelry stores. One of our favorite
motional purposes without places to visit is the chapel at Alto Vista to
compensation. say a prayer of thanks to everyone who has
blessed us with a smile. We want to thank
Last but not least: check out everyone in Aruba for making us feel that we
our website and Facebook are home every time we come back. Love
page! Thank you for support- to Aruba from Annabell Nikole. Please follow
ing our free newspaper, we me on Facebook: Annabell Nikole.
strive to make you a happy
reader every day again.q