How have the economies of the Caribbean Netherlands performed?
Of the three islands that made up the Caribbean Netherlands, only Bonaire experienced economic growth between 2012 and 2023 (41.8 percent). That growth was seen primarily between 2017 and 2023, and a number of sectors contributed to it. On St Eustatius, the economy contracted by 34.5 percent between 2012 and 2023, mainly due to the transport, information and communication sectors. On Saba the economy contracted by 7.0 percent in the same period, mainly due to the education sector.
| Year | Bonaire | St Eustatius | Saba |
|---|---|---|---|
| 2012 | 100.0 | 100.0 | 100.0 |
| 2013 | 102.4 | 100.8 | 105.5 |
| 2014 | 104.0 | 93.9 | 105.3 |
| 2015 | 107.6 | 97.0 | 106.6 |
| 2016 | 109.9 | 96.0 | 106.0 |
| 2017 | 108.5 | 102.3 | 104.5 |
| 2018 | 112.7 | 90.2 | 101.9 |
| 2019 | 119.8 | 82.5 | 96.5 |
| 2020 | 109.8 | 61.1 | 90.4 |
| 2021 | 122.6 | 74.0 | 93.2 |
| 2022 | 133.4 | 65.9 | 94.5 |
| 2023 | 141.8 | 65.5 | 93.0 |
Several sectors contributed to economic growth on Bonaire between 2017 and 2023. In the construction sector, economic value added rose considerably. This is related to the expansion of tourism on the island, population growth and infrastructure investment.
The number of tourists arriving on Bonaire by air increased from 128.5 thousand tourists in 2017 to 171 thousand in 2023. The rising number of tourists, combined with a 27.1 percent increase in the island's population, boosted activity in the accommodation and food services sector (hospitality) and the car rental and trade sector, during this period. Increased economic activity on the island also contributed to value added in the business services sector, which includes accounting and legal services.
The value added by public administration on Bonaire rose due to an increase in the number of jobs in this sector, from 1,190 in 2012 to 1,580 in 2023.
| Sector | Value added volume |
|---|---|
| Construction | 88.4 |
| Business services | 57.2 |
| Accommodation and food services |
43.6 |
| Public administration and public services |
41.6 |
| Energy, water, waste management |
36.9 |
| Trade | 36.2 |
| Real estate activities |
28.1 |
| Financial services | 26.6 |
| Culture, recreation, other services |
18.3 |
| Health and social care | 18.2 |
| Education | 15.6 |
| Manufacturing | 14.7 |
| Transport, information and communication |
-24.2 |
| Agriculture and mining and quarrying |
-52.9 |
Sharp decline in GDP on St Eustatius
The economic contraction on St Eustatius related mainly to the performance of a few large businesses on the island. Their output is mainly export-oriented and depends on the demand for oil in the region. The demand for these businesses’ products and services fell.
Although these businesses make up a substantial share of the GDP of St Eustatius, their impact on national income is limited. The profits of these businesses are not included in the national income because they are wholly foreign-owned enterprises; they contribute to labour income on the island, in particular.
Relative to 2017, the volume of GDP on St Eustatius was down by almost 36 percent in 2023, from 142 million to 91 million US dollars (in 2017 prices). This was down to a number of factors. In 2018, hurricane Irma caused major damage on the island. In 2019, a number of large businesses were significantly hampered by regional developments in the oil sector, which supressed the demand for oil storage. On top of that, the COVID-19 pandemic of 2020 depressed the demand for oil storage even further. In 2023, the demand for oil storage had yet to recover to its pre-2018 level.
| Year | St Eustatius | Saba |
|---|---|---|
| 2013 | 0.8 | 5.5 |
| 2014 | -6.8 | -0.2 |
| 2015 | 3.2 | 1.2 |
| 2016 | -1.0 | -0.5 |
| 2017 | 6.6 | -1.4 |
| 2018 | -11.8 | -2.5 |
| 2019 | -8.6 | -5.3 |
| 2020 | -25.9 | -6.3 |
| 2021 | 21.1 | 3.0 |
| 2022 | -11.0 | 1.5 |
| 2023 | -0.5 | -1.6 |
Contraction on Saba mainly due to education sector
The education sector made the largest contribution to the economic contraction on Saba. The number of students in 2023 was lower than the number in 2017.
Inbound tourism by air on Saba also decreased from 8.2 thousand tourists in 2017 to 5.7 thousand in 2023. That was a decrease of 30.5 percent, which had a negative impact on economic activity in the accommodation and food services sector and in real estate.