“PHILIPSBURG–Economic growth is expected this year, but at a slower pace than in 2012. This is one of the findings of the MacroMonitor Report produced by the Department of Economic Affairs, Transportation and Telecommunication EVT on a quarterly basis. The report gives an overview of the macro-economic developments of the country.
The assumption of economic growth is based on a flat export growth for 2013, while imports are increasing. The current account as a percentage of Gross Domestic Product (GDP) is projected to further deteriorate.
However, the season is still young, thus the external sector can pick up. The EVT Department will continue to monitor the developments of the various sectors and update the estimates during 2013 on a quarterly basis.
This 2012 year-end report highlights the development of the main key sectors of St. Maarten’s economy and the policies and projections of the various target markets of the international sector. Sectors include: international, external, fiscal and the monetary sector.
At production time of the 2012 Yearend MacroMonitor Report, data on some indicators for the last quarter of 2012 were still unavailable. These included the banking totals and balance of payment figures; therefore, the figures presented in the report could slightly change based on realised figures. These indicators will give the possible trends for 2013.
A brief overview of the findings for 2012 includes GDP growth projected at approximately four per cent. This growth is fuelled by the exceptional performance in the external sector such as cruise arrivals with six per cent increase, stay-over with eight per cent increase and occupancy rate (of both timeshare and hotels combined), increasing by six per cent, when compared to 2011.
From the fiscal sector, both revenues and expenditures increased five per cent and 18 per cent respectively, when compared to 2011. The much larger increase in expenditures than revenues can have adverse effects on the deficit. However, the increase in expenditures through Government consumption, investment in infrastructure and wages, also contributed to the economic growth for 2012. In small economies increase in Government expenditures serves as an engine towards economic growth and at the same time lead to a decrease in foreign reserve stock.
In the monetary sector, inflation was reduced to four per cent, down 0.6 per cent when compared to 2011. Major contributing factors were the easing inflation recorded in the expenditure categories of housing and transport, and communications both locally and globally.
Analysis of the international sector presents a bright outlook for 2013. The selected economies of the various regions show signs of growth and recovery; therefore, assuming that the spending power of these regions increase with the projected growth therein lies an opportunity for St. Maarten to capitalize on attracting more tourists to the island. This, however, will depend on efficient marketing strategies by the St. Maarten Tourism Bureau, it was stated in the release.
The report can be accessed at http://www.sintmaartengov.org; go to tab “Government,” scroll down to “Ministry of Tourism, Economic Affairs, Transportation and Telecommunications” link, go to “Department of Economic Affairs, Transportation and Telecommunications” and select the link “Economic Reports” and then select “MacroMonitor Yearend 2012 Report” for download.”
Article from St-Maarten’s newspaper The Daily Herald http://www.thedailyherald.com/index.php/islands/1-islands-news/38983-report-economic-growth-can-be-expected-this-year-.html
Bad luckily French St-Martin is very far from following this development. We are a little island. All native St-Maartiners have family on both sides of the island. Our people do not make any difference between Dutch and French side. We are a people. Of course we have different nationalities but this is mainly on the papers and institutionally. You do the turn of our island in 1 hour ands yet there are so many little things on which French and Dutch side do not cooperate. For some of them, I say it’s a pity.
Here is a link to the French Caribbean’s Institute of Statistics concerning the last report on economic development (IEDOM) for French St-Martin (the report is in French unfortunately I couldn’t get one in English) http://www.iedom.fr/IMG/pdf/ne170_portrait_panorama_2011_saint-martin.pdf
Here is also a link to an article of St-Martin Week newspaper of today concerning this report: http://www.stmartinweek.com/content/view/8185/1/ . It is also in French but if you would like to get it in English just inbox me or leave a comment I will get it translated.
Have great day!