Financial situation in the rest of the kingdoms k The financial and economic situation in the BES islands, Curaçao, Sint Maarten and Aruba are not particularly rosy. Next month there are elections in Aruba. The AVP government thinks it can win and has promised that it will perform. No cuts Aruba is facing a large deficit that must be curtailed at short notice. This enables the International Monetary Fund (IMF) in a published on 9 and August 15, 2013 report on the Aruban economy. Aruba has the irresponsible deficit run up in an attempt to protect against the effects of the decline of tourism during the global recession of 2009 and the closure of the oil refinery in subsequent years. Economy in recent years This makes the hole in the budget increased last year to 8.5 percent of gross domestic product (GDP). The Aruban government wants to reduce the deficit this year to 6 percent. The IMF believes that a good idea, but warned that the temptation to increase spending with a view to the upcoming elections must be resisted. The IMF expects the Aruban economy grows 2.3 percent this year, after shrinking by more than 1 percent last year. For 2014, up by 3 percent predicted. The Central Bank of Aruba is trying to please, which is difficult to combine. Both the government and the IMF The proposed austerity measures by the IMF have already been proposed by other bodies. It is proposed to significantly reduce the cost of government and to increase productivity. Its people must be better educated. Immigration must be economically necessary, not everyone can be admitted. Fiscal measures should be applied consistently to everyone equally. Increase of the BBO to 3 percent. Introduction 15 percent VAT. Raising the retirement age to 65 years, increase in disability insurance premiums and the premium of the MWV with introduction of a deductible and reduce services, reduce pensions. Diversification of the economy and tourism.
Posted on: Sun, 25 Aug 2013 14:22:26 +0000
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