Economic Conditions 2010

The Central Bank of Aruba. Annual Report 2010
In 2010 much of the Aruban economy continued to encounter challenges and uncertainties. Relying largely on external sources of income, Aruba's economy historically has been vulnerable to changes in world economic conditions. Consequently, the global economic and financial crisis of 2008-2010, combined with the temporary shutdown of the refinery, the slowdown in the tourism sector and a significant drop in foreign direct investment had a severe impact on the Aruban economy, as nominal gross domestic product (GDP) fell by 3.8 percent to Afl.4,306.1 million in 2010.
source: Centrale Bank van Aruba

ARUBA Economic Forecast Monitor.

March 3, 2010
The Economic Forecast publication is a summary of global and national projections of Aruba.
source: Centrale Bank Van Aruba

Economic Indicators

Aruba Monthly Bulletin. December 2010

Tourism
Total number of cruise visitors decreased by 1.0 percent during December 2010 compared to December 2009. For 2010, total number of cruise passengers declined by 37,344 (‐6.2 percent) compared to 2009.
source: Centrale Bank Van Aruba

Economic Outlook

• source: Economic Outlook Aruba 2008

The economy of Aruba has shown over the years a stable growth, although in 2001 and 2002 the real GDP growth suffered a small decline of 0,7 and 0,3 respectively as a result of the effects of 9/11. In 2003 the economy picked up again. The expectations are that the economy will continue to grow in the coming years.

 The economic growth is mainly based on the developments in the tourism sector. Aruba is a primary tourism destination that continues to attract tourism related investments and tourists. Still the aim to diversify the economy continues to be a priority. In this respect a competitive investment climate has to be created that stimulates a sustainable economic development. Entrepreneurship and innovation, capital intensive investments and knowledge economy will be the focus in the coming years.

The Global Financial Crisis and The Aruban Economy

Source:Central Bank of Aruba Press Release. October 9, 2008

Like many other central banks, the Centrale Bank van Aruba (CBA) is closely and continuously monitoring the developments in the financial markets and their effect on, among others, exchanges rates, oil and gold prices, and assessing the financial and economic impact of the ensuing financial crisis for the economy of Aruba.

With respect to the financial sector, preliminary information obtained from the financial institutions supervised by the CBA indicate that the international financial turmoil has had so far limited effect on their financial position.

In general, the Aruban banks and insurers only have a small part of their funds invested abroad. Notable is also that the commercial banks mainly lend to residents and, thus,have little foreign exchange exposure originating from their loan activities.

On the economic side, the current credit crunch on the international markets will likely make it more difficult for foreign investors to continue to invest in Aruba.

ARUBA: 2007 ARTICLE IV CONSULTATION.  

 Source: IMF

Aruba has made great strides since 1986, when it gained autonomy from the Kingdom of the Netherlands. Per capita income (in U.S. dollar terms) has more than tripled over the past 20 years making Aruba one of the most developed islands in the Caribbean.This impressive result has been achieved with the help of market- friendly policies that have fostered a stable macroeconomic environment and a rapid expansion of the tourism sector, now accounting for more than 50 percent of GDP. Equally important has been the openness of the economy as foreign investment and migrant workers have been key contributors to economic growth.

Economic Statistics

ARUBA: Statistical Appendix 2002-2006. Source: IMF