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 anticipate that the government will gradually address weaknesses in the financial services sector. --We expect real GDP will increase by 3% in 2025, following estimated growth of 5.4% in 2024, owing to continued strength in tourism. --We believe economic growth will support government revenues over our forecast horizon, while Curacao?s spending will be contained.

...The stable outlook reflects our expectation that relations with the Netherlands will remain supportive and that progress under its country package of reforms will advance smoothly, limiting the risk of potential political strain. At the same time, we expect continued, but decelerating growth, over the next several years, as the economy becomes more reliant on tourism....

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