Economy of Bonaire grows in 2023, contraction on St Eustatius and Saba
The economy of Bonaire grew by 6.3 percent in 2023. That growth was mainly driven by the construction, energy and accommodation & food services sectors. The economy of St Eustatius, meanwhile, contracted somewhat, by 0.5 percent. On Saba, there was a contraction of 1.6 percent, mainly due to education and public administration. Statistics Netherlands (CBS) reports this on the basis of newly released figures.
The decline in St. Eustatius' GDP compared to 2017, adjusted for price developments, was mainly caused by shrinkage in public administration, education, and health care.
Economic growth on Bonaire mainly driven by construction, energy and hospitality sectors
The economic value added by Bonaire’s construction sector rose by 21.4 percent. The growth in the construction sector is broad-based and due to the many construction projects underway on the island. In the energy, water & waste management sector, value added increased by 18.3 percent due to higher production of electricity and water, while consumption increased less rapdily. In addition, financial services grew by 11.7 percent, reflecting employment growth in this sector.
The number of tourists arriving by air decreased from 173 thousand tourists in 2022 to 171 thousand in 2023. On the other hand, the number of cruise ship passengers visiting the island went up from 285 thousand to 392 thousand in 2023. Tourists arriving on cruise ships spend less on Bonaire than those who stay on the island, however.
The higher number of tourists, combined with a 5.5 percent increase in the island's population, also boosted the economic value added by the accommodation & food services sector (hospitality) by 8.8 percent. The value added by the public administration sector was up by 6.0 percent due to an increase in the number of jobs in this sector.
The agriculture sector and mining & quarrying sector also contracted. In 2023, the demand for minerals from other countries was down.
Slight contraction on St Eustatius affects many sectors of the economy
The economic contraction of 0.5 percent seen on St Eustatius affected various sectors. It was caused mainly by a fall in the value added of the public administration sector. Labour volume fell by 6.3 percent in that sector. The education sector also contributed to the fall in GDP. A decline in student numbers combined with higher consumption led to a decrease in value added in the education sector. Value added in the health care sector was also down, as consumption rose faster than production. And the rental and real estate sector also saw a contraction, mainly due to a sharp drop in production.
Inbound tourism on St Eustatius increased from 5.6 thousand tourists in 2022 to 5.8 thousand in 2023 - an increase of 3.6 percent. That increase led to a rise in the economic value added of the trade sector and the accommodation and food services sector.
Contraction on Saba mainly due to education and government sectors
The education sector made the largest contribution to the economic contraction on Saba because of a fall in the number of students. Public administration also contributed to the contraction in GDP in 2023. The number of jobs in this sector fell by 4 percent.
The number of inbound tourists visiting Saba rose from 4.9 thousand tourists in 2022 to 5.7 thousand in 2023. However, tourist numbers remained well below the number seen in 2019, when 8.8 thousand tourists visited the island. The recovery in the tourism sector has led to an increase in value added in the accommodation and food services sector and the trade sector.
Sources:
StatLine - Caribisch Nederland; bruto binnenlands product (bbp)
https://opendata.cbs.nl/#/CBS/nl/dataset/84789NED
StatLine - Bonaire; Bruto toegevoegde waarde in basisprijzen per bedrijfstak
https://opendata.cbs.nl/statline/#/CBS/nl/dataset/84769NED
StatLine - Caribisch Nederland; bruto binnenlands product (bbp) per inwoner https://opendata.cbs.nl/#/CBS/nl/dataset/85251NED/table?dl=7B90F
Explanations:
Price developments: https://www.cbs.nl/nl-nl/onze-diensten/methoden/begrippen/waardering-in-constante-prijzen
Added value: https://www.cbs.nl/nl-nl/onze-diensten/methoden/begrippen?tab=t#id=toegevoegde-waarde--bruto-basisprijzen--