1. Since gaining its autonomy in 2010, Curaçao suffered multiple economic shocks. The economy shrank by 28 percent in the past decade due in part to spillovers from Venezuela and the pandemic (Figure 1). Population and employment have been continuously declining since 2016 and unemployment remains elevated. The closure of the refinery poses questions about new sources of growth. Curaçao faces pervasive structural challenges including governance vulnerabilities. The pandemic constrained the implementation of staff advice (Annex I). The agreement with The Netherlands to implement structural reforms creates a window of opportunity to address these challenges and improve resilience (Annex II). The war in Ukraine led to higher inflation that disproportionally affected the vulnerable and put a drag on the recovery.
KINGDOM OF THE NETHERLANDS—CURAÇAO AND SINT MAARTEN