This Selected Issues paper analyzes sustaining potential growth in Aruba. As in the other Caribbean countries, there are growing concerns in Aruba about the slowdown in economic growth over the past two decades and the consequent tepid outlook for potential growth. Tackling such concerns requires identifying the underlying factors. This paper presents an overview of Aruba’s economic growth performance since 1990, analyzes factors behind the slowdown, and discusses how potential growth can be sustained. It suggests that Aruba should aim to finance its renewable energy and other future growth initiatives sustainably.
The statistical data on indicators of tourism activity, estimated GDP and components, real GDP, contributions to real GDP growth, changes in the consumer price index, legal minimum wages, summary of trends in public finance, and tax revenue of Aruba are presented in the paper. The data on operational budget of the social insurance bank, government debt, balance- of-payments summary, monetary survey, monetary developments, and changes in sources of broad money with respect to Aruba are also presented.