Kingdom of the Netherlands: Curaçao and Saint Maarten: 2011 Article IV Consultation: Staff Report; Informational Annex; and Public Information Notice on the Executive Board Discussion

December 8, 2011

Summary

The two newly autonomous countries within the Kingdom of the Netherlands face substantial challenges. Growth has been low, and unemployment high. The current account deficit has widened to worrisome levels, increasing the vulnerability of the peg to the U.S. dollar and stimulating calls for dollarizing or dissolving the currency union. A substantial adjustment is needed to bring the underlying current account deficit to historically sustainable levels over the medium term. This could be facilitated by measures to restrain credit growth, supported by fiscal consolidation.

Subject: Asset and liability management, Balance of payments, Banking, Current account deficits, Debt relief, Exports, External debt, International trade, Public debt

Keywords: Caribbean, central bank, consumer price index, CR, Current account deficits, Debt relief, deficit, deficit outcome, exchange rate, expenditure, Exports, Global, ISCR, liability positions vis-à-vis nonresident, Netherlands Antillies debt, total consumer price index

Pages:
57
Volume:
2011
DOI:
https://doi.org/10.5089/9781463928599.002
Issue:
342
Series:
Country Report No. 2011/342
Stock No:
1ANTEA2011001
ISBN:
9781463928599
ISSN:
1934-7685

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