Curacao

Although we expect Curacao's economy will begin to recover from the effects of the COVID-19 pandemic by year-end 2021, underlying structural weakness will likely limit growth and contribute to Curacao's dependence on the Netherlands (AAA/Stable/A-1+) for financial support. Following an estimated 20% contraction in 2020, we expect Curacao's real GDP will increase by 3.8% in 2021 as tourism slowly rebounds and other industries struggle to recover. We expect it will take time for the country package agreed upon between Curacao and the Netherlands in late 2020 to address some of the longstanding structural weaknesses in Curacao's economy. We view the agreement as a positive development, although ongoing economic and fiscal struggles will likely continue to weigh on Curacao's relationship with

...Institutional and economic profile Flexibility and performance profile Although we expect Curacao's economy will begin to recover from the effects of the COVID-19 pandemic by year-end 2021, underlying structural weakness will likely limit growth and contribute to Curacao's dependence on the Netherlands (###/Stable/A-1+) for financial support. + Following an estimated 20% contraction in 2020, we expect Curacao's real GDP will increase by 3.8% in 2021 as tourism slowly rebounds and other industries struggle to recover. + We expect it will take time for the country package agreed upon between Curacao and the Netherlands in late 2020 to address some of the longstanding structural weaknesses in Curacao's economy. + We view the agreement as a positive development, although ongoing economic and fiscal struggles will likely continue to weigh on Curacao's relationship with the Netherlands, particularly in the context of the upcoming March 2021 elections, and potential challenges in implementing...

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