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PostPosted: Wed Jan 28, 2009 9:08 pm 
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Joined: Fri Nov 29, 2002 5:47 am
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Cooperation Is Essential To Avoid Severe Recession

January 28th 2009, Aruba.

ORANJESTAD-The economy of Aruba is about to enter a period of contraction, this is mainly
attributed to the global credit crisis. The Central Bank of Aruba (CBA) is expecting a decrease of
1.2 percent in Real GDP for 2009. Aruba will experience its second recession in just 5 years in what
is to be a decade of relatively low economic growth.

There may be a decline in investments from the private sector in large projects on the island, this
as a consequence of the difficulty for foreign investors to receive loans from banks. In addition the
number of tourist arrivals is expected to decline between 5.6 and 6.1 percent in 2009. The decline
in tourist arrivals may result in the contraction of tourism receipts by 2 percent.

Value of imported goods from abroad is expected to decline by 6.9 percent. The value of exported
goods to other countries in the World is expected to decline by 10.6 percent in 2009. The annual
inflation rate is expected to decline from 8.5 percent in 2008 to 4.2 percent in 2009, which is
considered a positive trend by CBA. The value of consumed goods on the island is expected to
increase by 0.6 percent.

Substantial and aggressive marketing of Aruba abroad may soften the decline in tourism, and
government spending on infrastructure and other community projects should provide jobs
(temporarily) for the construction sector. The government has already allocated an additional
US$10 million to market Aruba abroad. AHATA (Aruba Hotel & Tourism Association) will allocate
more money for marketing. The cooperation between the public and private sector, and the
commitment of both sectors is essential to avoid a moderate to severe recession.


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