Economy contracts on Saba and Statia, grows in Bonaire in 2023

The economy of Bonaire grew by 6.3 percent in 2023, driven primarily by growth in the construction, energy, and accommodation & food services sectors. Meanwhile, the economy of St. Eustatius contracted slightly by 0.5 percent, while Saba experienced a 1.6 percent contraction, mainly due to declines in education and public administration. Statistics Netherlands (CBS) reports these findings based on newly released economic data.

Saba: Economic Challenges Continue

Saba experienced a 1.6 percent economic contraction in 2023, with the decline primarily attributed to challenges in education and public administration sectors. The specific details of Saba’s economic performance and contributing factors require further analysis from the available data.

St. Eustatius: Slight Economic Contraction

The 0.5 percent economic contraction on St. Eustatius affected multiple sectors of the economy. The decline was primarily driven by reduced value added in the public administration sector, where labor volume fell by 6.3 percent.

Key Factors in Economic Decline

The education sector also contributed to the GDP decline. A combination of decreasing student numbers and higher consumption led to reduced value added in education. Similarly, the health care sector saw value added decrease as consumption rose faster than production.

The rental and real estate sector experienced contraction as well, mainly due to a sharp drop in production levels.

Tourism Provides Some Relief

Despite the overall economic contraction, inbound tourism on St. Eustatius showed modest improvement, increasing from 5,600 tourists in 2022 to 5,800 in 2023—a 3.6 percent increase. This growth contributed to increased economic value added in both the trade sector and the accommodation and food services sector.

Bonaire: Broad-Based Economic Growth

Construction and Energy Lead Growth

The economic value added by Bonaire’s construction sector rose by 21.4 percent in 2023. This broad-based growth reflects the numerous construction projects currently underway on the island. The energy, water & waste management sector also performed strongly, with value added increasing by 18.3 percent due to higher production of electricity and water, while consumption increased less rapidly.

Financial services contributed to the growth story as well, expanding by 11.7 percent, reflecting employment growth in this sector.

Tourism Shows Mixed Results

Tourism patterns on Bonaire shifted significantly in 2023. Air arrivals decreased slightly from 173,000 tourists in 2022 to 171,000 in 2023. However, cruise ship passengers increased substantially from 285,000 to 392,000 visitors. It should be noted that cruise ship tourists typically spend less on Bonaire than visitors who stay on the island.

The combined effect of higher tourist numbers and a 5.5 percent increase in the island’s population boosted the accommodation & food services sector by 8.8 percent. The public administration sector also grew, with value added up 6.0 percent due to increased employment in this area.

Sector Challenges

Not all sectors experienced growth. The agriculture sector and mining & quarrying sector both contracted in 2023. The mining sector’s decline was attributed to reduced international demand for minerals.

CBS