How did purchasing power change in 2022?
Purchasing power in the Caribbean Netherlands declined in 2022, partly due to high inflation. On Bonaire, purchasing power declined by 4.2 percent, on St Eustatius by 3.3 percent and on Saba by 1.6 percent, relative to 2021. However, people receiving benefit payments on Bonaire and St Eustatius actually saw their purchasing power improve due to increases in those benefits and an energy allowance paid in 2022.
In order to combat poverty in the Caribbean Netherlands, since 2019, steps have been taken to increase minimum wages and benefits payments to pensioners (AOV), widows/widowers and orphans (AWW) and people receiving income support, in order to improve their purchasing power. In 2022, benefits and the minimum wage were increased to mitigate the effects of inflation in 2021, and people received an additional payment to compensate for higher costs.
Child benefit was also increased once again, and households receiving income support were paid an energy allowance. However, for the general population, these measures were not enough to make up for the average increase in prices in 2022. Inflation stood at 9.7 percent on Bonaire, 7.7 percent on St Eustatius and 8.6 percent on Saba. Median purchasing power fell on all three islands in 2022, following ten years of almost continuous increases.
| Bonaire | St Eustatius | Saba | |
|---|---|---|---|
| 2012 | 3.2 | 4.5 | 4.6 |
| 2013 | 1.6 | 2.3 | 3.3 |
| 2014 | 2.0 | 1.1 | 3.1 |
| 2015 | 4.6 | 4.6 | 3.1 |
| 2016 | 2.6 | 2.4 | 6.3 |
| 2017 | 1.1 | 4.4 | 1.1 |
| 2018 | -0.5 | 3.4 | 0.3 |
| 2019 | 3.7 | 6.6 | 5.5 |
| 2020 | 5.6 | 2.7 | 4.7 |
| 2021 | 1.7 | 1.2 | 1.2 |
| 2022* | -4.2 | -3.3 | -1.6 |
| * Provisional figures | |||
Purchasing power improved for those receiving benefits
Households that rely on income support received an energy allowance in 2022 to help cover higher energy bills, in addition to the increase in benefits. On Bonaire and St Eustatius, this led to an improvement in the median purchasing power of benefits recipients by 2.2 and 2.5 percent, respectively. But on all three islands, median purchasing power declined for those living in households that earn their income primarily from paid employment. On Bonaire, the fall in purchasing power among working people was the highest at 4.9 percent. Among working people on St Eustatius and Saba, purchasing power fell by 4.1 percent and 1.7 percent, respectively.
| Bonaire | St Eustatius | Saba | |
|---|---|---|---|
| Total | -4.2 | -3.3 | -1.6 |
| Income from paid work | -4.9 | -4.1 | -1.7 |
| Income from benefits | 2.2 | 2.5 | -0.2 |
| * Provisional figures | |||
The majority of people saw their purchasing power decline
When median purchasing power falls, this does not necessarily mean that everyone is affected. For example, purchasing power improved for at least 40 percent of islanders in 2022. Over 90 percent of residents of the Caribbean Netherlands are members of households that derive their income primarily from work. Despite the decline in the median purchasing power of this group, around 2 in 5 working people saw an improvement in their purchasing power. Conversely, the increase in median purchasing power among benefits recipients, who make up only 10 percent of the population, does not necessarily mean that the position of everybody in those households improved. A higher proportion of this group saw their position improve compared to working people. On St Eustatius, 3 out of 4 persons living in households that rely mainly on benefits for their income saw their position improve.
| Bonaire | St Eustatius | Saba | |
|---|---|---|---|
| Total | 40 | 42 | 44 |
| Income from paid work | 38 | 39 | 43 |
| Income from benefits | 52 | 77 | 45 |
| * Provisional figures | |||