Currency | Aruban florin (AWG) 1 US$ = 1.79 AWG (2014) |
---|---|
Calendar year | |
Statistics | |
GDP | |
GDP growth |
|
GDP per capita | |
GDP by sector | agriculture: 0.4%, industry: 33.3%, services: 66.3% (2002 est.) |
3.579% (2018) [1] | |
Population below poverty line | N/A% |
Labour force | 51,610 (2007 est.) |
Labour force by occupation | agriculture: NA%, industry: NA%, services: NA% |
Unemployment | 6.9% (2005 est.) |
Main industries | tourism, petroleum transshipment facilities, and banking |
External | |
Exports | $312.7 million (2014 est.) [2] |
Export goods | live animals and animal products, art and collectibles, machinery and electrical equipment, and transport equipment |
Main export partners | United States 41.3% Colombia 17.9% Venezuela 13.5% Netherlands 11.2% Canada 6.2% (2015 est.) [3] |
Imports | $1.528 billion (2014 est.) |
Import goods | machinery and electrical equipment, refined oil for bunkering and re-export, chemicals; and foodstuffs |
Main import partners | United States 50.8% Venezuela 14.9% Mexico 9.8% Netherlands 8.3% United Kingdom 5.8% (2015 est.) [4] |
Public finances | |
$533.4 million (2005 est.) | |
All values, unless otherwise stated, are in US dollars. |
The economy of Aruba is an open system, with tourism currently providing the largest percentage of the country's income. Because of tourism's rapid growth in the last 80 years, related industries like construction have also flourished in Aruba. Other primary industries include oil refining and storage, as well as offshore banking. Despite the island's low rainfall in the past year, the people[ who? ] have proven that Aruba's soil is full of nutrients and many crops do amazingly well in the soil[ citation needed ]. Many more locals have started participating more to horticulture, permaculture and agriculture. Creating a start to an internal economy. Aloe cultivation, livestock, and fishing also contribute to Aruba's economy. In addition, the country also exports art and collectibles, machinery, electrical equipment, and transport equipment. Aruba's small labor force and low unemployment rate have led to many unfilled job vacancies, despite sharp rises in wage rates in recent years.
With such a large part of its economy dependent on tourism, a few political parties are striving [ citation needed ] to increase business in other sectors to protect against possible industry slumps to prevent another economic shut-down like what was experienced during 2020. Their current focus is on expanding into the cannabis and hemp industry, transitioning to a circular economy, creating an internal economy in the primary sector, technology, and finance.
Unlike many Caribbean islands, a plantation economy never developed on Aruba due to its arid climate. Early Spanish explorers considered the island of little value, partly because the poor soil made growing crops difficult and partly because their attempts to find gold turned up empty-handed. However, long after the Dutch obtained control of Aruba, they found the gold the Spanish had been seeking.
With the discovery of gold on Aruba in 1800, mining became the island's foremost industry. Aruba's economy boomed. However, by 1916 the gold supply had mostly been tapped out, making it impossible for companies to turn a profit. As the gold mining industry waned, so did the economy.
First planted on Aruba in 1850, aloes thrive in its desert conditions. With a healthy demand for aloe products, it became an important part of Aruba's economy. In fact, for many years, the country was aloe's top exporter. But over the years, many aloe fields were replaced by buildings, diminishing its production and exports declined.
The oldest company on the island, Aruba Aloe, has recently instituted changes in the hopes of becoming Aruba's leading product manufacturer. It built a new, modern facility, an aloe museum, and designed new packaging. Although most of their product line sells in the national market, a 2005 exporting deal with a U.S. company and sales through their website have increased their international market.
Despite setbacks caused by the troubled gold and aloe industries, Aruba's economy didn't suffer long. Because of its location near Venezuela, the island became an attractive spot for oil refineries. The Lago Oil and Transport Company, owned by Standard Oil of New Jersey (now Exxon), opened in 1929 near the transshipping port of San Nicolaas. Following in their footsteps, the Eagle Oil refinery opened soon after in Oranjestad. By early 1939, a more consistent supply of crude oil was achieved, allowing the refineries to operate at full capacity. Over the next few decades, the oil industry took over as Aruba's primary economic force.
With the United States entry into World War II in 1942 the demand for aviation gasoline further increased and considerable expansion was done at the Lago refinery soon after the United States entered the war. With this expansion, Lago became one of the largest refineries in the world, only bested by Royal Dutch Shell Isla refinery on Curaçao, and a major producer of petroleum products for the Allied war efforts. The importance of the Lago refinery was well known to the German High Command and on February 16, 1942 the Lago refinery was attacked by the German submarine U-156. Due to mistakes by the German deck gunner the refinery was not damaged but three of the Lago tankers were torpedoed in San Nicolaas harbour.
The Eagle Oil refinery shut down and was dismantled in the late 1950s. But the Lago refinery kept going until 1985, when the demand for oil fell and Exxon closed it. In 1991, the Coastal Corporation bought it, scaled down operations, and reopened it. Coastal later sold the refinery to Valero Energy Corporation in 2004. Its reopening didn't raise Aruba's oil industry to its previous heights although it did revive that sector and continued to be a key contributor to the country's economy until 2009 when it was closed. In December 2010, Valero Energy announced plans to reopen the refinery.
In 1947, Aruba's government founded a tourist board to explore the possibility of developing a tourism industry. Several years later, cruise ships began to dock in Oranjestad, Aruba's capital city. The island's first luxury hotel was built in 1959, giving the fledgling industry a good start. Over the years, tourism grew and helped create a prosperous economy.
As the oil industry waned, tourism increased in importance. The government offered fiscal incentives to spur growth of hotels and other tourist-oriented businesses. Their efforts resulted in a steady and rapid rise in tourism. When a surplus of these jobs couldn't be filled, they placed a one-year moratorium on new hotel construction and new tourist corporations.
Following the September 11 attacks, tourism temporarily declined because of grounded flights and travel fears. Aruba stepped up its visible security force in tourist areas to heighten safety and reassure visitors. After a short time, tourism rebounded strongly.
Another potential threat to the industry occurred in 2005, when the May 30 disappearance of vacationing Alabama teen Natalee Holloway made international news. Claiming that Aruban authorities weren't taking the case seriously enough, her mother and the Governor of Alabama called for a nationwide boycott of Aruba. However, the U.S. federal government didn't back the proposed boycott. Aruba's reputation as one of the safest islands in the Caribbean may have helped it overcome any negative stigma caused by the case. The amount of tourism in June 2005 actually rose by 9% from the previous year.
Aruba, officially the Country of Aruba, is a constituent country within the Kingdom of the Netherlands, in the southern Caribbean Sea 29 kilometres (18 mi) north of the Venezuelan peninsula of Paraguaná and 80 kilometres (50 mi) northwest of Curaçao. In 1986, it became a constituent country within the Kingdom of the Netherlands and acquired the formal name the Country of Aruba.
The economy of the Bahamas is dependent upon tourism and offshore banking. The Bahamas is the richest country in the West Indies and is ranked 14th in North America for nominal GDP. It is a stable, developing nation in the Lucayan Archipelago, with a population of 391,232 (2016). Steady growth in tourism receipts and a boom in construction of new hotels, resorts, and residences had led to solid GDP growth for many years. The slowdown in the Economy of the United States and the September 11 attacks held back growth in these sectors from 2001 to 2003.
The economy of Grenada is largely tourism-based, small, and open economy. Over the past two decades, the main thrust of Grenada's economy has shifted from agriculture to services, with tourism serving as the leading foreign currency earning sector. The country's principal export crops are the spices nutmeg and mace. Other crops for export include cocoa, citrus fruits, bananas, cloves, and cinnamon. Manufacturing industries in Grenada operate mostly on a small scale, including production of beverages and other foodstuffs, textiles, and the assembly of electronic components for export.
The economy of the United States Virgin Islands is primarily dependent upon tourism, trade, and other services, accounting for nearly 60% of the Virgin Island's GDP and about half of total civilian employment. Close to two million tourists per year visit the islands. The government is the single largest employer. The agriculture sector is small, with most food being imported. The manufacturing sector consists of rum distilling, electronics, pharmaceuticals, and watch assembly. Rum production is significant. Shipments during a six-month period of fiscal year 2016 totaled 8,136.6 million proof gallons.
The economy of Saint Kitts and Nevis has traditionally depended on the growing and processing of sugar cane; decreasing world prices have hurt the industry in recent years. Tourism, export-oriented manufacturing, and offshore banking activity have assumed larger roles in Saint Kitts and Nevis. Most food is imported. The government has undertaken a program designed to revitalize the faltering sugar sector. It is also working to improve revenue collection in order to better fund social programs. In 1997, some leaders in Nevis were urging separation from Saint Kitts on the basis that Nevis was paying far more in taxes than it was receiving in government services, but the vote on secession failed in August 1998. In late September 1998, Hurricane Georges caused approximately $445 million in damages and limited GDP growth for the year.
The economy of Bahrain is heavily dependent upon oil and gas. The Bahraini Dinar is the second-highest-valued currency unit in the world. Since the late 20th century, Bahrain has heavily invested in the banking and tourism sectors. The country's capital, Manama is home to many large financial structures. Bahrain's finance industry is very successful. In 2008, Bahrain was named the world's fastest growing financial center by the City of London's Global Financial Centres Index. Bahrain's banking and financial services sector, particularly Islamic banking, have benefited from the regional boom driven by demand for oil. Petroleum is Bahrain's most exported product, accounting for 60% of export receipts, 70% of government revenues, and 11% of GDP. Aluminium is the second most exported product, followed by finance and construction materials.
Transport in Aruba is facilitated by road, air, and rail. Aruba features a well-established road network, with the majority of the roads being paved. However, as one ventures towards the interior of the island, the prevalence of paved roads decreases, giving way to more rugged terrain. Conversely, coastal areas typically offer-well maintained paved roads. Aruba's road network covers a total distance of about 998 kilometres (620 mi), with 361 kilometres (220 mi) remaining unpaved.
The geography of Aruba, located at the juncture of the South American and Caribbean tectonic plates, has been shaped by a complex interplay of geological processes. From its flat expanses to its rugged coastlines, Aruba's geography and geology reveal the island's geographical diversity and its underlying geological formations, offering a comprehensive understanding of Aruba's terrain and environmental dynamics of this Caribbean destination.
Oranjestad, the capital and most populous of Aruba's eight regions, is located on the southwestern coast of the island. In Papiamento, the local language, Oranjestad is commonly referred to as "Playa" by the locals.
The culture of Aruba, encompassing its language, music, and cuisine, is diverse and has been influenced by both regional and foreign cultures. One significant foreign influence originates from the Iberian Peninsula, which had a significant impact on the island for approximately 137 years, starting c. 1500. These influences were characaterized by a strong religious presence, missionary activities, and economic exploitation.
San Nicolaas is 19 kilometres (12 mi) southeast of Oranjestad, and is Aruba's second largest city. As of 2010 it has a population of 15,283, most of whom originate from the British Caribbean and rest of the Caribbean.
Lago Colony was a community located on the east end of the island of Aruba, near the area presently known as Seroe Colorado.
Lago Oil & Transport Co. Ltd. was established in 1924 as a shipping company responsible for transporting crude oil from Lake Maracaibo to its transshipment facility on the island of Aruba. The Lago refinery, a subsidiary of the Standard Oil Company (Exxon), remained in operation until March 31, 1985 when Exxon made the decision to shut down and dismantle both the refinery and Lago Colony.
The following outline is provided as an overview of and introduction to Aruba:
The economy of Antigua and Barbuda is service-based, with tourism and government services representing the key sources of employment and income. Tourism accounts directly or indirectly for more than half of GDP and is also the principal earner of foreign exchange in Antigua and Barbuda. However, a series of violent hurricanes since 1995 resulted in serious damage to tourist infrastructure and periods of sharp reductions in visitor numbers. In 1999 the budding offshore financial sector was seriously hurt by financial sanctions imposed by the United States and United Kingdom as a result of the loosening of its money-laundering controls. The government has made efforts to comply with international demands in order to get the sanctions lifted. The dual island nation's agricultural production is mainly directed to the domestic market; the sector is constrained by the limited water supply and labor shortages that reflect the pull of higher wages in tourism and construction. Manufacturing comprises enclave-type assembly for export with major products being bedding, handicrafts, and electronic components. Prospects for economic growth in the medium term will continue to depend on income growth in the industrialized world, especially in the US, which accounts for about one-third of all tourist arrivals. Estimated overall economic growth for 2000 was 2.5%. Inflation has trended down going from above 2 percent in the 1995-99 period and estimated at 0 percent in 2000.
General elections were held in Aruba on 25 September 2009. The elections were the seventh to be held for membership of the Estates since autonomy was granted by the Dutch in 1986, and resulted in a landslide victory for the Aruban People's Party, which won 12 of the 21 seats in the Estates.
The economy of Curaçao is a high income economy, as defined by the World Bank. The island has a well-developed infrastructure with strong tourism and financial services sectors. Shipping, international trade, oil refining, and other activities related to the port of Willemstad also make a significant contribution to the economy.
Horacio Oduber Hospital (HOH) is a medium-sized general hospital in Aruba.
Water Tower San Nicolas is a water tower and museum in San Nicolaas, Aruba. It was built in 1939 to relieve the water shortage in Aruba. In 1979, the tower became obsolete and in 1996, it was transferred to the monument fund, and restored. In 2016, the industry museum opened in the tower.
The Arend Petroleum Company Ltd. was originally established in 1927 as "Compania Mexicana de Petrol el Aquila" on the island of Aruba. However, it underwent a name change and became more commonly known as "Arend" or "Eagle". The Arend was a subsidiary of the Royal Dutch Shell Group. The government generously granted a broad coastal strip at Druif Beach of approximately 5 kilometres in length.