Business View Caribbean - Feb 2024

home and 1 million annual stayover visitors. Although proximal to Latin America, Aruba shares strong cultural and political ties with the Netherlands and demonstrates proficiency in the languages English, Dutch, Spanish, and its native tongue, Papiamento. Beyond a sun-soaked destination, Aruba has a remarkable story of economic development and transformation that has made it a shining example of resilience and innovation in the region. Aruba boasts several favorable macroeconomic indicators. Firstly, its GDP is anticipated to grow by 4.6% in 2024, an increase compared to the global average GDP growth forecast of 3.2%, as reported by the International Monetary Fund (IMF). The country has managed to mitigate large inflationary shocks and is projected to be at 2.3% in 2024, well below the expected global average inflation rate of 5.2%, safeguarding the purchasing power of Aruban residents. Moreover,Aruba’s fiscal position is robust, with a projected government budget deficit of 0.8% of GDP in 2023, indicating strong financial health and the ability to meet financial obligations. Lastly, the Aruban florin, Aruba’s currency, is pegged to the US dollar at a fixed exchange rate of 1.79 florins per US dollar, delivering stability and predictability for businesses and consumers. From the gold rush of the 1800s to aloe cultivation in the 1890s, oil refining from the 1920s to 1985, and now a bustling tourism sector, the economic landscape of Aruba has undergone several transformations in its relatively short history. To this day, Aruba’s economy is heavily reliant on tourism, although the island’s historic industry of aloe cultivation continues to play a pivotal role in the economy. While the tourism industry has engendered significant wealth for the island, the Government of Aruba acknowledges that tourism alone is not conducive to a sustainable and resilient future. In an era of rapidly changing circumstances and fierce global competition, Aruba has set a course to transform and empower its economy with a focus on sustainability and resilience. To this end, Aruba has committed itself to diversifying its economy 17 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 02 THE DEPARTMENT OF ECONOMIC AFFAIRS, COMMERCE AND INDUSTRY OF ARUB