St. Maarten projects economy to grow 0.8 % in 2013

The Curacao Chronicle reports that the Department of Economic Affairs, Transportation and Telecommunication (EVT) of St. Maarten produces on a quarterly basis the MacroMonitor. This a publication that gives an overview of the macro-economic developments of St. Maarten. In addition, special editions of the MacroMonitor are produced that cover specific global events that can impact our local economy.

This first quarter report highlights the development of the key sectors of Sint Maarten’s economy and also provides preliminary estimates for 2013. Additionally, the policies and economic indicator projections of the various target markets (of the international sector) of the first quarter 2013 are also taken into perspective. It should be noted however, that the estimates provided for St. Maarten are preliminaries and are only based on the developments experienced during the first quarter of 2013. As the year progresses new estimates will be provided per quarter.

A brief overview of the key indicators for 2013 includes; GDP growth projected at approximately 0.8%. This low growth projection is based on the performance of the External Sector for the period January to March 2013, keeping in mind that tourism constitutes on average 75-80% of the economy’s overall exports both directly and indirectly. Cruise arrivals have decreased with 7%, while Stay-over arrivals only experienced 2% increase. Occupancy Rate showed 1% increase when compared to the same period of 2012.

For the reporting period, Government revenues decreased by 2% when compared to the first quarter of 2012. This decrease was notably in the categories of profit tax, transfers from households and transfers from abroad. Expenditures for the reporting period increased by 4%; this increase is notable in the categories of government wage bill (wages and salaries) which increased 13% and 8%
respectively. It should be noted however, that during this first quarter revenues amounted to Naf120 million and expenditures amounted to Naf111 million. Providing that this trend continues, prospects on the current account are favorable since revenues exceed expenditures by 8% for the first quarter 2013.

In the Monetary sector, inflation is projected to decrease to approximately 3% for the year 2013. This estimate however, can easily be jeopardized by unforeseen events that can easily trigger world market prices on fuel and food prices.

Analysis of the International sector presents a bright outlook for 2013. The selected economies of the various regions show signs of growth and recovery. For this first quarter of 2013, the North American region contributed 65% of St. Maarten’s Stayover tourism and the European region 23%. The Caribbean, South American and the Rest of the World region, (which comprises of Asian and African countries), they contributed between 3 and 4 percent towards St. Maarten’s first quarter overall stayover tourism.

For further information on this MacroMonitor report, the Department of Economic Affairs, Transport and Telecommunication can be contacted, via telephone number 721-549-0220. Additionally more in-depth look at this report could be done via www.sintmaartengov.org.