How did the purchasing power develop in 2021?
In 2021, the purchasing power of the population in the Caribbean Netherlands improved. The population of Bonaire gained 1.1 percent relative to 2020; on St Eustatius this was 0.5 percent, while Saba residents gained 0.1 percent.
To improve the livelihood security in the Caribbean Netherlands, a number of structural steps have been taken since 2019 to raise minimum wages and benefits, lending a boost to local purchasing power. In 2021, the child benefit was raised. The COVID-19 emergency support measures to offset income losses for employees and self-employed were still in effect. Benefits and minimum wages were not adjusted for the deflation in 2020. In 2021, rising average price levels reduced the purchasing power on Bonaire and Saba. On St Eustatius, the average price level fell slightly, which had a favourable effect on purchasing power.
Purchasing power up for the employed population
On all three islands, the median purchasing power improved for people in households with a primary income from employment. On Bonaire the purchasing power grew by 1.7 percent. A median purchasing power development of 1.7 percent means a gain of at least 1.7 percent for one half of the population and less than 1.7 percent for the other half. On St Eustatius and Saba the growth was 0.4 percent and 1.1 percent respectively. Benefit recipients on St Eustatius gained purchasing power, whereas on Bonaire and Saba they faced a loss.
| Bonaire | St Eustatius | Saba | |
|---|---|---|---|
| Total population | 1.1 | 0.5 | 0.1 |
| Income from employment | 1.7 | 0.4 | 1.1 |
| Income from social benefits | -1.0 | 0.9 | -0.9 |
| * Provisional figures | |||
Most people gained purchasing power
Individual changes in purchasing power differ from person to person. In 2021, most people in the Caribbean Netherlands benefited from improved purchasing power. On Bonaire, St Eustatius and Saba, the respective shares of the population who were positively affected were 53, 56 and 51 percent. Likewise, for more than half of the employed population the purchasing power went up. On St Eustatius, more than 3 out of 4 persons in households with mainly income from social benefits gained purchasing power, whereas on Bonaire and Saba the purchasing power fell for most social benefit recipients.
| Bonaire | St Eustatius | Saba | |
|---|---|---|---|
| Total population | 53 | 56 | 51 |
| Income from employment | 55 | 55 | 54 |
| Income from social benefits | 30 | 76 | 25 |
| * Provisional figures | |||
Young people benefited most often
On all three islands, people in households with a main earner up to the age of 40 were most likely to benefit from improved purchasing power. On St Eustatius, 67 percent of this group saw an increase in purchasing power; on Bonaire and Saba, this was 58 percent. The majority of these main earners are employed and in the process of climbing the career ladder. Their incomes rise as they gain more work experience and obtain better-paying jobs. In households with a middle-aged main earner, most people gained purchasing power as well. The same applies to households on St Eustatius with a main earner over the age of 60.
| Bonaire | St Eustatius | Saba | |
|---|---|---|---|
| Under 40 yrs | 58 | 67 | 58 |
| 40 to 59 yrs | 56 | 51 | 56 |
| 60 yrs and over | 42 | 56 | 35 |
| * Provisional figures | |||