Curacao

This report does not constitute a rating action. Overview Institutional and economic profile Flexibility and performance profile We expect strong growth in 2024 will moderate over the forecast horizon and Curacao?s status as a constituent member of the Kingdom of the Netherlands will promote institutional stability. We forecast economic growth and ongoing fiscal control will lead to near-balanced fiscal results over the next two years, and we anticipate that the government will gradually address weaknesses in the financial services sector. --We expect real GDP will increase by 4% in 2024, following estimated growth of 4.1% in 2023, spurred by tourism. --We believe government revenues will continue to strengthen over our forecast horizon, while spending will be contained. --Curacao will continue

...The stable outlook reflects our expectation that discussions with the Netherlands regarding Curacao's liquidity loans, contingent on an agreement related to the resolution of a local financial institution, as well as progress under its country package of reforms, will advance smoothly, limiting the risk of potential political strain. At the same time, we expect the recovery will continue but decelerate over the next several years, as the economy becomes more reliant on tourism....

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