Kingdom of the Netherland-Curaçao and Sint Maarten: 2025 Article IV Consultation Discussions-Press Release; and Staff Report

The 2025 Article IV Consultation discusses that Curaçao’s economy continued its vigorous expansion in 2024 and the near-term outlook is strong but heightened global uncertainty tilts risks to the downside. Safeguarding medium-term fiscal sustainability will require carefully weighing higher investment, social spending priorities, and equitable tax reform. Healthcare reform is an urgent priority to restore financial sustainability and limit fiscal risks. A fiscally responsible pension adjustment to secure living standards for vulnerable households needs to be accompanied by a broadening of the contributor base. Governance, anti-corruption and financial integrity reforms have advanced, strengthening Curaçao’s institutional framework. A pivot toward private and local government investment is needed to sustain growth beyond the Trust Fund’s lifespan and brace against a global slowdown. Improving social development requires fiscal space via further revenue mobilization. Improving social development requires fiscal space via further revenue mobilization. Financial sector risks are contained, but macroprudential surveillance needs to step up as mortgage lending accelerates.