Kingdom of the Netherlands-Aruba: 2025 Article IV Consultation Discussions-Press Release; and Staff Report

Author: International Monetary Fund. Western Hemisphere Dept.

Kingdom of the Netherlands—Aruba: 2025 Article IV Consultation Discussions-Press Release; and Staff Report

Volume/Issue: Volume 2025 Issue 315

Publication date: December 2025

ISBN: 9798229032520

$20.00

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Topics covered in this book

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Economics- Macroeconomics , Money and Monetary Policy , Public Finance , Industries - Hospitality Travel and Tourism , consultation discussion , fund holding , exchange rate arrangement , Aruba's currency , consumer price index , Credit , Anti-money laundering and combating the financing of terrorism (AML/CFT) , Global , Caribbean

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Summary

The economy grew strongly over 2021-24, driven by post-pandemic tourism, with an improved fiscal position and a declining debt-to-GDP ratio. Among its policy priorities, the government aims to boost purchasing power, lower living costs, and increase compensation allowances for pensioners. In June 2024, Aruba and the Netherlands agreed to the creation of a new consensus Kingdom Act aimed at achieving and maintaining sustainable public finances in Aruba. If the Kingdom Act is enacted, the interest rate on Dutch pandemic loans will be reduced.