June 26, 2023 –WILLEMSTAD – The Central Bureau of Statistics (CBS) presents today the first results of Curaçao’s economic development for the year 2022.
The economic activity in Curaçao has increased by 7.9 percent in 2022, following the growth of over 4 percent in 2021. The economy remains resilient despite the record-high inflation rate, which increased more than expected over the past year, reaching 7.4 percent in 2022, mainly due to the significant rise in energy prices.
The economic growth is calculated based on the volume growth in the production process and the cyclical development. These data are still preliminary because full data from all sectors are not yet available. Economic indicators are statistics that indicate the current state of a country’s economy, depending on a specific area of the economy (such as industry, employment, prices, etc.).
In 2022, a new method was implemented for calculating GDP at constant prices, which means that previous years are no longer comparable in terms of methodology. Until 2021, GDP in nominal prices was adjusted with the total CPI (Consumer Price Index) to obtain constant prices, but now they are adjusted per sector.
The economic development by industry
In 2022, the tourism industry was the most important sector in terms of creating value added among all industries, followed by the transportation and storage industry, and the administrative and support activities industry.
Across the board of economic activities, there was growth, except for four sectors, but the aforementioned sectors were certainly the major drivers of real growth.
The trend in the Transportation & Storage industry showed a resurgence of approximately 32 percent in economic activities in 2022. In transportation, all activities in the harbor and airport generally improved. The number of tanker activities, container movements, and the weight of vessels handled increased in harbor activities. However, it should be noted that the impact of the absence of a refinery is still factored in. Cruise calls and the number of cruise passengers also increased, but they have not yet reached pre-COVID levels. Air transport activities also saw significant growth due to an increase in the number of passengers, landings, and airfreight.
The hospitality industry (providing accommodation and meal services) belonging to the tourism sector experienced continued growth in 2022. Activities in the hotel and restaurant sector significantly increased compared to the previous year. Destinations that performed well in the previous year continue to grow, while destinations that had lower performance in previous years are also showing promising growth figures. In terms of continents, tourism from South America (+140%) showed the strongest growth, followed by the Caribbean and North America (+125%), and Europe (+46%). Overall, these developments have led to a 68.4 percent increase in value added in the hotel and restaurant sector.
In the Administrative and Support Activities sector, a significant increase of 30 percent was observed. In this sector, several activities related to tourism, such as car rental, office administrative and support services, and other business support activities, experienced a spin-off effect due to the growth in tourism.
The Real Estate sector saw a 1.81 percent increase in activities due to higher rental properties.
The contribution of the Government sector to the economic development was relatively lower in 2022. A decline of 9.6 percent was noted.
In Arts, Entertainment, and Recreation, there was an increase of over 18 percent (18.3%). The growth in activities in this sector is also partly linked to tourism.