On 28 December 2012 alreardy stated that 2013 will not be easy one. I refered to the global outlook:
"The global economy has yet to shake off the fallout from the crisis of 2008-2009. Global growth dropped to almost 3 percent in 2012, which indicates that about a half a percentage point has been shaved off the long-term trend since the crisis emerged. This slowing trend will likely continue. Mature economies are still healing the scars of the 2008-2009 crisis. But unlike in 2010 and 2011, emerging markets did not pick up the slack in 2012, and won’t do so in 2013. Uncertainty across the regions – from the post-election ‘fiscal cliff’ question in the U.S. to the Chinese leadership transition and reforms in the Euro Area – will continue to have global impacts in sluggish trade and tepid foreign direct investment." (http/www.conference-board.org/data/globaloutlook.cfm)
Now the President of the central bank of Curacao confirms that this will also be the case for Curacao. He states that 2012 was a bad year.
The global economic recovery remained subdued during the second quarter of 2012, reflecting primarily fiscal consolidation in the advanced economies. Also, the financial markets continued to perform weakly. Meanwhile, activities slowed down in the emerging economies, notably China, Brazil, and India, due to, among other things, the weaker external environment, domestic capacity constraints, and fiscal tightening by the governments.
In Curaçao, real GDP contracted by an estimated 0.2% during the second quarter of 2012, a turnaround compared to the expansion of 0.9% registered in the second quarter of 2011. The economic contraction during 2012’s second quarter was accompanied by accelerated inflationary pressures reflecting mainly domestic factors, particularly higher domestic prices of gasoline and electricity, and the increased turnover tax rate as of January 2012. Consequently, inflation in Curaçao soared to 4.3% in the June quarter of 2012, up from 1.4% a year earlier. Furthermore, the annualized inflation rate climbed to 3.3%." (http/news.caribseek.com/index.php/caribbean-islands-news/curacao-news/item/33957-report-of-the-president-dr-ed-tromp)
We will take it from here. The government will implement their policies; raising taxes and reducubg expensises. We confidence is restored investors will invest again.
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