IMF REPORT ON THE DUTCH CARIBBEAN
A long period of stagnation appears to have ended in the Netherlands Antilles
The International Monetary Fund (IMF) undertook a mission – an official staff visit to the Netherlands Antilles – as part of regular consultations under Article IV of the IMF’s Articles of Agreement. Click here for their preliminary conclusions.
According to the IMF, sustaining investor confidence would be important for ensuring that growth remains above historical norms in the medium term.
The IMF projects growth in the islands now comprising the Netherlands Antilles to moderate to some 2½ percent by 2011. This is cautiously optimistic, and is predicated on recovering export markets, increased capacity from recent infrastructure investments, and – owing to the introduction of a fiscal rule and debt forgiveness – improved business confidence.
Pension and healthcare reform is now urgent, says the IMF. They welcome the introduction of a balanced budget rule and fiscal supervision starting 2009, but implementation will be key. Other structural reforms are necessary as well.
Karel Frielink
