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National Accounts Curaçao 2014

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National Accounts Curaçao 2014 Central Bureau of Statistics W illemstad, September 2018

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Colophon Publication Central Bureau of Statistics Section Economic Statistics: R. Dreischor L. Ford S. Bomberg A. He k C. Jager J. Mahabali D. Martis G. Varlack Explanatory notes to tables The sum of separate items may not add up to the total due to rounding Data are in million s of Antillean Guilders ( million ANG) unless stated otherwise The codes in tables 12 to 18 re fer to the classification of transactions and other flows; see also annex II Explanation of symbols: o 0.0 = less than half of the unit chosen o = nil o . = no information available o blank = category not applicable Address Central Bureau of Statistics World Trade Center Building Piscaderabay z/n, Willemstad, Curaçao Tel. (+599 9) 839 2300 E mail address: info@cbs.cw Facebook: cbscur Website: www.cbs.cw Online database: digitallibrary.cbs.cw Copyright © Central Bureau of Statistics. The contents of this publication may be quoted, provided that the source is given accurately and clearly. ISBN: 978 99904 1 918 4

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 2018 i Preface National Accounts Curaçao offers a source of information for everyo ne who wishes to be informed about various topics regarding the economic situation of Curaçao. The national accounts of Curaçao are based on the concepts and definitions recommended by the UN and IMF in the System of National Accounts 1993 (SNA1993) as far as the data availability allows it. The system consists of a consistent and flexible set of macro economic accounts, which can be used for economic analysis (by either local organizations and institutions such as enterprises, universities, students and in ternational organizations as the UN, IMF, Worldbank) and policy purposes. The publication period of time 200 8 20 14 and it consists of a compilation of sector accounts for Curaçao. Besides the data s eries 2008 2014 also an analysis is given of the macro economic situation for Curaçao in 201 4 . This analysis regards the Gross Domestic Product, Gross National Income, Gross National Disposable Income, and Saving. New in this publication is an analysis o f some indicators by institutional sectors. A special thanks to all contributors who have provided CBS with the necessary data to compile this publication. Drs. S. de Boer, Director Central Bureau of Statistics

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 2018 ii Contents Preface ................................ ................................ ................................ ................................ ......... i Macro economic overview 2014 ................................ ................................ ............................. v 1. Introduction ................................ ................................ ................................ ........................... 1 2. Methodology, concepts, definitions and data sources ................................ .................... 2 2.1 Introduction ................................ ................................ ................................ .................. 2 2.2 The Sequence of Accounts ................................ ................................ .......................... 3 2.2.1 The Production Accounts ................................ ................................ ........ 4 2.2.2 The Dist ribut ion and Use of Income Acco unts ................................ .... 6 2 . 2.3 The Accumulation Accounts ................................ ................................ ... 9 2.2.4 The Rest of the World or External Transaction Account .................. 10 2. 3 Data sources ................................ ................................ ................................ ................ 11 2. 3.1The primary data sou rces ................................ ................................ ....... 11 2. 3.2The secondary data sources ................................ ................................ ... 12 2.3 ..... 12 3. Mac ro economic developments in 2014 ................................ ................................ .......... 14 3.1 Introdu ction ................................ ................................ ................................ ................ 14 3.2 Gross Domestic Prod uct ................................ ................................ ........................... 1 4 3.2.1Gross D omestic Product by production approach ............................. 14 3.2. 2 Gross D o mestic Product by expenditure approach ............................ 21 3.2.1Gro ss Domestic Product by income approach ................................ .... 24 3.3 Gross Nati onal Income ................................ ................................ ............................. 28 3.4 Gross National Disposable Income ................................ ................................ ......... 30 3.5 Gross Saving ................................ ................................ ................................ ............... 30 3.6 Gross National Income, per capita ................................ ................................ .......... 30 4. Developments by institutional sectors, resident and non resident ............................ 32 4.1 Non financial corporations sector ................................ ................................ ........... 32 4.2 Financial corporation sector ................................ ................................ ..................... 36 4.3 Government sector (General government and Social security) .......................... 38 4.4 Household & Non profit institutions serving households ( NPISH ) ................. 41 4.5 Rest of the world ................................ ................................ ................................ ........ 44

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 2018 iii List of tables, figures and boxes in the text List of tables A: Macro economic aggregates 201 3 201 4 ................................ ................................ ............ v B: Gross Domestic Product ................................ ................................ ................................ .... 15 C: Gross and Net Value Added , total economy ................................ ................................ . 2 0 D: Taxes on production and imports ................................ ................................ ................... 20 E: Gross domestic product by expe nditure ................................ ................................ ........ 22 F: Final consumption ex penditure ................................ ................................ ....................... 23 G: Other taxes on production ................................ ................................ ................................ 28 H : Gross National Income ................................ ................................ ................................ ..... 28 I: GDP, net primary income and GNI ................................ ................................ .................. 2 9 J: Property income, total economy ................................ ................................ ....................... 29 K : Gross National Disposable Income ................................ ................................ ................. 3 0 L : Gross Saving ................................ ................................ ................................ ........................ 3 0 M: Gross value added, Financial corporations ................................ ................................ ... 36 N: Compensation of employees , F inancial corporations ................................ .................. 36 O: Compensation of employees by Households & Npish ................................ ................ 38 P : Compensation of employees , by institutional sectors ................................ .................. 4 3 List of figures Figure 1: Gross Value added , total economy ................................ ................................ ...... 1 6 Figure 2: O utp ut by institutional sector ................................ ................................ .............. 1 7 Figure 3: O utput total economy ................................ ................................ ............................ 18 Figure 4: I ntermediate consumption by institutional sector ................................ ............ 1 8 Figure 5: I ntermediate consumption total economy ................................ ......................... 19 Figure 6: Share in total consumption expenditure, 2014 ................................ .................. 23 Figure 7 : Structure of the GDP by income ................................ ................................ .......... 2 5 Figure 8 : Compensation of employees, total economy, 2014 ................................ ........... 25 Figure 9 : Wages and salaries by institutional sector ................................ ......................... 26 Figure 10 : Per capita Gross National income, market price (ANG) ................................ 31 Figure 11 : Gross value added (mln ANG), Non finan cial corporations ........................ 34 Figure 12: Gross fixed capital formation (mln ANG), Non financial corporations ..... 3 5 Figure 13 : Contribution to compensation of employees, Financial corporations ......... 37 Figure 14 : Gross fixed capital formation , Financial corporations ................................ .... 37

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 2018 iv Fig ure 15: Gross fixed capital formation (mln ANG), General G overnment ................. 39 Figure 16: Taxes on production and imports (mln ANG) ................................ ................ 4 0 Figure 17: Output 2014, H ouseholds & NPISH ................................ ................................ .. 4 2 Figure 18 : Export development (mln ANG) ................................ ................................ ....... 46 Figure 19 : Import development (mln ANG) ................................ ................................ ....... 47 Figure 20: Capital account (Use side) ................................ ................................ .................. 48 Figure 21: Capital Account: Other capital transfers (Resource side) .............................. 49 Attached tables 1: Total economy, product, income, saving and net lending ................................ ........... 5 1 2: Income per capita ................................ ................................ ................................ ................ 5 1 3: Product, income, saving and net len ding by sector ................................ ....................... 5 2 4: Supply and use summary ................................ ................................ ................................ .. 5 3 5: Gross Domestic Product by expenditure ................................ ................................ ........ 5 3 6: Gross Domestic Product by sector and industry ................................ ........................... 5 4 7: Gross Fixed Capital Formation by sector and industry ................................ ................ 5 5 8: Government final consumption expenditure by composi tion of costs and functions ................................ ................................ ................................ .............................. 5 6 9: Compensation of employees of the government sector by function .......................... 5 7 10: Taxes on production and imports ................................ ................................ .................. 5 7 11: Current taxes on income and wealth ................................ ................................ ............. 5 7 12: Summary sequence of accounts for non financial corporations ................................ 5 8 13: Summary sequence of accounts for financial corporations ................................ ........ 6 0 14: Summary sequence of accounts for general government ................................ ........... 6 2 15: Summary sequence of accounts for social security ................................ ..................... 6 4 16: Summary sequence of accounts for households and non pro fit Institutions serving households ................................ ................................ ................................ ........... 6 6 17: Summary sequence of accounts for the total economy ................................ ............... 6 8 18: Summary sequence of accounts for the rest of the world ................................ ........... 7 0 List of abbreviations ................................ ................................ ................................ .............. 7 2 Annex 1: Overview of selected concepts and definitions ................................ .............................. 7 4 II. Classification of transactions and other flows ................................ ............................... 7 9

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 2018 v Macro economic overview 2014 This chapter gives an overview of some macro aggregates for Curaçao in 201 4. Table A: Macro economic aggregates Curaçao, 2013 2014 2013 2014 % change (mln ANG) * Gross Domestic Product , market prices 5634.2 5653.5 0.3 Gross National Income 5537.9 5604.3 1.2 Gross National Disposable Income 5406.7 5518.1 2.1 Gross saving 918.7 1275.1 38.8 Per capita Gross National Income (GNI) , market p rices 36002.2 35946.4 0 . 2 * all data is in mln with the exception of per capita GNI The nominal growth rate of GDP is about 0. 3 percent in 201 4 . In both 2013 and 2014 a value of ANG 5. 6 billion is reached . In 2013, nominal growth rate of 0.5 was measured, meaning that in 2014 it has dropped with 0.2 percent points. Nominal GDP is GDP evaluated at current market prices. Therefore, nominal GDP will include all of the changes in market prices that have occurred during the current year due to inflation or deflation . To arrive a t the real GDP at market prices the infla tion or deflation should be excluded. Therefore, at a nominal growth rate of 0 .3 percent and an inflation of 1. 5 percent , the real GDP arrive s at a rate of 1 .1 percent. In 2013 a real growth of 0.8 was measured. I n that year, the inflation rate was 1.3 percent. The in crement of GDP in nominal terms, combined with an in crease in the net primary income received from abroad is the main reason for the GNI growth in 201 4 . It has increased with 1. 2 percent in 201 4 , fr om ANG 5. 5 b illion in 2013 to ANG 5. 6 b illion in 201 4 . The GNDI has in cremented with 2.1 percent from ANG 5.4 b illion in 201 3 to ANG 5 .5 billion in 201 4 . The main reason for this development is the in crease in the net current transfers from abroad. Gro ss Saving has in creased with almost 39 percent , from ANG 0.9 b illion in 201 3 to 1.3 b illion in 201 4 . Gross National Income per capita has de creased with 0.2 percent in 201 4 due to the faster growth of the population compared to the growth of the GNI . F or more information, please refer to enclosed tables in this publication (tables 1 18).

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 1 1. Introduction The system of national accounts of Curaçao is based on the concepts and definitions recommended in the SNA1993 manual as far as the data availabilit y allows it. The definitions mentioned in this publication are based on the SNA manual. The SNA1993 provides a comprehensive accounting framework, which allows the economic data to be compiled and presented in a format that is designed for purposes of ec onomic analysis, decision taking and policy making. Since the accounts are usually compiled for a couple of years, they can also be used for analyzing economic developments over time 1 . The central framework of the SNA1993 is set up in the Integrated Econo mic Accounts (IEA). The IEA is a full set of economic accounts of institutional sectors and the rest of the world. The table series 12 to 18 refer to the IEA for Curaçao. In this publication, the Integrated Economic accounts are being described and analy zed. A description of the methodology, concepts, definitions and data sources is given in chapter 2 starting with a description of the integrated economic accounts in paragraph 2.2 In chapter 3 a brief description of the macroeconomic developments in 201 4 is presented. In chapter 4 a more in depth analyses of some indicators will be given for the institutional sectors . Table series 1, 2, 3, and 6 to 11 refer to the analytical tables, which contain the macro aggregates and their underlying details. These tables are derived from the integrated economic accounts tables 12 up to table 18. The publication closes with two annexes. The first annex contains an overview of selected concepts and definitions, while the second annex shows the classification of trans actions and other flows. 1 System of National Accounts 1993 manual, page 1

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 2 2. Methodology, concepts, definitions and data sources 2.1. Introduction Curaçao sts of the integrated economic accounts (IEA) for each institutional sector of the economy. The I EA is a full set of accounts of resident institutional sectors and the rest of the world. The keywords are : set of accounts and resident institutional sectors. The resident institutional sectors The resident institutional sectors or units distinguished i n the System are: the financial corporations sector including quasi corporations (FC); these are corporations engaged in financial intermediation and in auxiliary financial activities. A quasi corporation is an unincorporated enterprise that functions as a corporation in the sense that it has a complete set of accounts consisting of profit and loss accounts and balance sheets, and must be able to make independent decisions. the non financial corporations sector including quasi corporations (NFC); these incl ude corporations whose principal activity is the production of non financial market goods or non financial services; the general government sector with social security as a sub sector (GOV & SOCSEC), whose principal activity consists of: Providing goods a nd services to the community and to individual households; Financing the provision of goods and services out of taxation or other income; Redistributing income and wealth by means of transfers; Engaging mostly in non market production. the household sector (HH); this includes not only the persons who engage in consumption but also in production. The production units of the households are the sole proprietorship enterprises and partnerships, which are not quasi corporations. According to the Business Census of 1998 about two third of all one man businesses and almost all partnerships are quasi corporations. the non profit institutions serving households sector ( NPISH ); this includes legal or social entities created for the purpose of producing goods and servi ces. The units that establish, control or finance them are not permitted to make any profits or have any financial gain.

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 3 The Central Bureau of Statistics uses the same sector classification as mentioned in the SNA1993. However, in the presentation of the results , the HH sector and the NPISH sector are grouped together. 2 .2. The sequence of accounts The whole economic process from production to income, to redistribution of income, consumption and saving to the accumulation of fixed assets and financial a ssets, to the position of net worth is recorded for each institutional sector. The term sequence implies that the balancing item of the first account flows to the next account and so on. In general the SNA1993 distinguishes the following accounts 2 : I. Production account II. Distribution and use of income accounts II.1. Primary distribution of income account II.1.1. Generation of income account II.1.2. Allocation of primary income account II.1.2.1 Entrepreneurial income account II.1.2.2 Allocation of other primary income account II.2. Secondary distribution of income account II.3. Redistribution of income in kind account II.4. Use of income account II.4.1. Use of disposable income account II.4.2. Use of adjusted disposable income acco unt III. Accumulation accounts III.1. Capital account III.2. Financial account III.3. Other changes in assets account IV. Balance sheets V. Rest of the world account V.I. External account of goods and services V.II. External account of primary income and current transfers V.III. External accumulation accounts V.III.1. Capital account V.III.2. Financial account V.III.3. Other changes in assets account V.IV. External assets and liabilities account 2 Figure 2.3. Synoptic presentation of the accounts, balancing items and main aggregates, page 28 System of National Accounts 1993 manual.

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 4 Given the available data, the accoun ts in Curaçao consist of account I, account II, account III ( except account III.2 and III.3), and account V ( except account V.III.2, V.III.3 and V.IV) . In the following paragraphs, the main features of the accounts regarding Curaçao will be described. 2 .2.1. The Production account The production account of the individual institutional sectors shows output and intermediate consumption of goods and services, with value added as balancing item. The keywords are: output, intermediate consumption and value added. Output Output is divided into: market output, output produced for own final use, and other non market output. Market output Market output is output that is sold at prices that are economically significant or otherwise disposed of on the market or intended for sale or disposal on the market. Prices are economically significant when they have a significant influence on the amounts the producers are willing to supply and on the amounts purchasers wish to buy, in other words, the prices are determi ned by the market mechanism. Output produced for own final use This type of output consists of goods or services that are kept for their own final use by the owners of the enterprises in which they are produced. Examples in the case of Curaçao are the o wn account investments, housing services produced for own consumption by owner occupiers, and services produced on own account by employing paid domestic help. The output excludes domestic and personal services produced for own consumption within household s by the same household. Other non market output Other non market output consists of goods and services produced by the non profit institutions serving households and government sector. The goods and services are supplied free of charge or at prices that are not economically significant, to other institutional units or the community. As mentioned in the SNA manual such output may be produced for two reasons: It may be technically impossible to make individuals pay for collective services because their con sumption cannot be monitored or controlled.

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 5 The production of such services has to be organized collectively by government units and financed out of funds other than receipts from sales, namely taxation or other government incomes; Government units and NPI SH s may also produce and supply goods or services to individual households for which they could charge but choose not to do so as a matter of social or economic policy e.g. the provision of education or health services, free or at prices that are not econo mically significant. Intermediate consumption Intermediate consumption consists of the value of the goods and services that are used as inputs in a production process. It excludes fixed assets whose consumption is recorded as consumption of fixed capital, and labor inputs. The goods or services may be either transformed or used up by the production process. An example of the first is grain, which may be transformed into flour, which in turn may be transformed into bread. An example of the latter is electri city and most services. The production accounts of the individual institutional sectors are grouped to the production account for the total economy. This account includes, besides aforementioned items, also the financial intermediation services indirectly measured ( FISIM ) and the taxes less subsidies on products. The balancing item is Gross/Net Domestic Product. Financial intermediation services indirectly measured This is equal to the total property income receivable by financial intermediaries minus the ir total interest payable, excluding the value of any property income receivable from the investment of their own funds; as such income does not arise from financial intermediation. Taxes T axes are divided in taxes on products and other taxes on productio n. Together they form the taxes on production and imports. The taxes on products in Curaçao consist of e.g. i m port duties, export taxes, excise on beer and liquor. The other taxes on production consist in the case of Curaçao mostly of taxes on the owners hip or use of land, motor vehicle tax paid for company cars, legal charges and license fees. A category of taxes that is related to income is the category current taxes on income and wealth divided into taxes on income (wage tax, profit tax, income tax) a nd the other current taxes on income. In this category, the personal use of vehicles is recorded.

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 6 The terms direct and indirect taxes are no longer used by the SNA. Subsidies The subsidies are divided into: subsidies on products other subsidies on produ ction A subsidy on a product is a subsidy payable per unit of a good or service. Examples are subsidies to the public transportation, water and waste disposal companies. The remaining subsidies are the subsidies on production, which resident enterprises ma y receive as a consequence of engaging in production. Examples of such subsidies mentioned in the SNA are subsidies on payroll or workforce and subsidies to reduce pollution. In the case of Curaçao subsidies to market non profit institutions are registered under this heading. Value Added As mentioned before, the balancing item of this acco unt is gross or net value added, for the individual sectors. Gross value added is equal to gross output minus intermediate consumption. The difference between gross and net is depreciation or consumption of fixed capital. The production account for the total economy is equal to the sum of the production accounts of the different sectors plus taxes less subsidies on products. The balancing item is equal to the well known macro aggregate Gross Domestic Product (GDP). Gross Domestic Product (GDP) is equal to: The sum of gross value added of all resident producer units (institutional sectors or, alternatively, industries) plus that part (possibly the total) of taxes, less su bsidies on products, which is not included in the valuation of output (production approach) or, The sum of the final uses of goods and services (all uses except intermediate consumption) measured in purchasers' prices, less the value of imports of goods an d services (expenditure approach) or, The sum of primary incomes distributed by resident producer units (income approach). Net Domestic Product at market prices (NDPmp) is obtained by deducting the consumption of fixed capital from GDP. Neither gross nor n et domestic product is a measure of welfare. Domestic product is an indicator of overall production activity. 2.2. 2 Distribution and use of income accounts There are four income accounts, namely the primary distribution of income account, the secondary distribution of income account, the redistribution of income in kind account, and the use of income account.

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 7 The primary distribution of income account The primary distribution of income account is divided into the generation of income account and the all ocation of primary income account. The generation of income account contains data regarding Compensation of employees ( ) , other taxes on production, and other subsidies on production. For the econom y as a whole, this account includes all taxes on production and imports and all subsidies. The balancing item is operating surplus. Compensation of employees measures the total income, earned by employees in return for contributing to production during an accounting period of time . It consists of wages and salaries and employers social contribution (supplements to wages and salaries), and furthermore it is the major component of gross domestic income (GDI). The allocation of primary income account is divi ded into the entrepreneurial income account and the allocation of other primary income account, with the balance of primary incomes as balancing item. In Curaçao, these accounts are grouped to one account containing information regarding property income di vided into interest and the distributed income of corporations, and reinvested earnings on foreign direct investment. For the financial corporations and households sector, this account includes an This refers to the fact that the reserves of the insurance companies, which are being invested, in fact belong to the household sector. For the economy as a whole, the balancing item is equal to gross/net national income. Gross Nationa l Income (GNI) is equal to GDP less primary incomes payable to non resident units plus primary incomes receivable from non resident units. In other words, GNI is equal to GDP less taxes (less subsidies) on production and imports, compensation of employees and property income payable to the rest of the world plus the corresponding items receivable from the rest of the world. Thus, GNI at market prices is the sum of gross primary incomes receivable by resident institutional units/sectors. In contrast to GDP, GNI is not a concept of value added, but a concept of income (primary income). Net national income (NNI) is equal to GNI minus consumption of fixed capital.

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 8 The secondary distribution of income account The secondary distribution of income account contain s the previously mentioned current taxes on income and wealth and other current transfers. The other current transfers consist of non life insurance premiums and claims and miscellaneous current), family and student grants etc. The balancing item is dispos able income for the individual sectors, which is equal to saving in the case of the non financial sector. For the total economy, the balancing item is equal to gross/net national disposable income. Gross National Disposable Income is equal to GNI at mark et prices less current transfers (other than taxes, less subsidies, on production and imports) payable to non resident units from the rest of the world. Gross National Disposable Income measur es the income available to the nation for final consumption and Gross Saving. National Disposable Income is the sum of disposable income of all resident institutional units/sectors. By deducting the consumption of fixed capital from Gross National Disposab le Income, Net National Disposable Income is obtained. The redistribution of income in kind account This account shows the social transfers in kind. These consist of social benefits in kind and transfer of individual non market goods and services. These a re provided to resident households by government units, including social security funds, and NPISH s. In the case of Curaçao only the transfer of individual non market goods and services are included because of insufficient data regarding the social benefit s in kind. The balancing item is the adjusted disposable income. The use of income account This account is divided into the use of disposable income account and the use of adjusted disposable income account. The use of disposable income account (II.4.1.) shows how disposable income is used for consumption and saving. For the financial corporations sector and household sector, this account em refers to the fact that the households in fact own the reserves of the private funded pension schemes.

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 9 The use of adjusted disposable income account (II.4.2.) shows how the adjusted disposable income is used for actual final consumption and saving. Ac tual final consumption is equal to final consumption plus the social transfers in kind. This concept is only valid for the household, government and non profit institutions serving households sector. For the household sector, this account also includes th e previously mentioned adjustment item. It is important to note that the saving are equal in both accounts. 2.2.3 The accumulation accounts As mentioned before, in the case of Curaçao only the capital account is being compiled, mainly because of lack of data that is needed to construct the other accounts. The capital account includes: Gross fixed capital formation ( GFCF ) Changes in inventories Acquisitions less disposals of land and other tangible non produced assets Capital transfers of which inve stment grants The balancing item is net lending/net borrowing both for the individual sectors and for the total economy. A transfer is defined as a transaction in which one institutional unit provides a good, service or asset to another unit without rece iving from the latter any good, service or asset in return as counterpart. Transfers may be either current in kind or in cash or capital in kind and in cash. In the case of a capital transfer, the ownership of an asset (other t han inventories) is transfe rred, or an asset (other than inventories) is purchased or disposed of by one or both parties to the transaction. An example of a capital transfer is an investment grant (in cash). In practice, capital transfers tend to be large, infrequent and irregular. Current transfers consist of all transfers that are not transfers of capital. They directly affect the level of disposable income and could influence the consumption of goods or services. Current transfers tend to be comparatively small and are made freque ntly and/or regularly. Both parties should classify a transfer in the same way. The capital account is the last in the sequence of accounts of resident institutional units for Curaçao. No financial accounts (III.2), other changes in

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 10 the volume of assets account (III.3) and balance sheets (IV) are being compiled. 2.2.4 The rest of the world account or external transactions account This account refers to the full range of transactions that take place between the total economy and the rest of the world. The rest of the world or external transaction account for Curaçao consists of the external account of goods and services, the external account for primary incomes and current transfers, and the capital account. The external account of goods and services s hows the export and import of goods and services. With regard to the external account for primary incomes and current transfers, the following transactions are applicable to Curaçao: The in and outflow of compensation of employees, The in and outflow of property income; these include only the interest and the total distributed income of corporations and the reinvested earnings on direct foreign investment, The inflow of current taxes on income and wealth; this is related to the profit tax paid by the off shore companies, The in and outflow of other current transfers; these are related to the non life insurance premiums and claims, the receipt of development aid for social projects, pensions and student and family grants. Of the several external accum ulation accounts, only the capital account is being compiled. Of all the transactions of the capital account mentioned in the SNA the investment grants are the main transactions applic able. The investment grants are related to the development aid received for investments. The balancing item of the capital account is net lending/net borrowing.

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 11 2. 3 The data sources In this paragraph, an overview is given of the data sources, both primary and secondary data sources that are used to obtain the nece ssary to for compiling the national accounts. 2.3 .1. The primary data sources An important data source for national accounts is the yearly national accounts survey conducted by the Central Bureau of Statistics. The results of this survey provide informat ion about the profit and loss account and the balance sheet. This survey excludes commercial banks, unincorporated government enterprises, taxis, bus drivers and domestic services. The following data by enterprise can be derived from the survey: Output In termediate consumption Wages and salaries Profit tax Gross fixed capital formation Consumption of fixed capital Interest, dividends and retained earnings . The data of corresponding enterprises are grouped to industries to arrive at sample totals. These totals are inflated with a three year average of the number of employees as measured by the labor force sample survey to arrive at the total population. The data of corresponding industries are then grouped to arrive at data by sector. All enterprises wit h 10 or more employees have to cooperate each year with this survey. From the enterprises with less than 10 employees, a random sample is taken. Once an enterprise is selected, it stays in the sample for four consecutive years. The survey covers about 1 8 % of all enterprises in the business registry of the Central Bureau of Statistics of Curaçao . Enterprises with 10 or more employees, which responded well each year, are approached by email at their own request. 11 interviewers collect the data regarding t he other enterprises . The survey starts every year in June and enterprise data are requested of the prior book year . It takes about six months to collect all the data after which the processing begins. Part of the processing includes adding the Internatio nal Standard Industrial Classification codes the different enterprises.

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 12 All companies selected for the survey are obligated to fill out the survey forms by law. In case of refusal to cooperate, the Central Bureau of Statistics has the instruments to take the necessary steps to secure cooperation in the future. 2. 3 .2. The secondary data sources As mentioned before, the survey does not include commercial banks, unincorporated government enterprises, taxis, bus drivers and domestic housekeeping activities. The data regarding these activities are derived from other sources. Some of the secondary data sources are: The Central Bank of Curaçao and St. Maarten, for data regarding the balance of payments, commercial banks and insurance companies The Customs Offi ce, for data regarding imports and exports by product The departments of Finance, for data regarding government data The SVB for data regarding social security Furthermore, administrative data of the Department of Public Transportation are used for activi ties of taxis and bus drivers. The data of other surveys are also used, for example the Census and Labor Force survey (AKO) for domestic personal services. 2. 3 .3. Processing of the data in framework The data from bo th the primary and secondary data sources are processed in a computerized framework. The Integrated Economic Accounts (IEA) are based on a system of counterpart data in which data for one sector is used for other sectors e.g. wages and salaries paid by t he different sectors are automatically set (through formulas) equal to those received by the household sector. For this purpose, a system of transaction and sector codes was set up. After the data input in the pre worksheets, central framework and analyt ical tables, the data has to be reconciled or balanced. This means that supply and use of the total economy must be equal and net lending / net borrowing from the rest of the world must be equal to the opposite of net lending/net borrowing of the total econo my in the Integrated Economic Accounts. Furthermore the different approaches to GDP must amount to the same GDP

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 13 and the sum of detailed data must be equal to the total e.g. the sum of the data by industry must be equal to that of the sectors. The reconcili ation of the IEA is done manual ly.

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 14 3. Macr o economic developments in 201 4 3.1 Introduction This chapter gives a summary of the developments of some macro aggregates for Curaçao in 2014 compared to 2013. In t his publication the following macro aggregates will be described: Gross Domestic Products (GDP) Gross National Income (GNI) Gross National Disposable Income (GNDI) Gross Saving Gross National Income, per capita (GNI, per capita) 3.2 Gross Domestic Product The Gross Domestic Product (GDP) has experienced a nominal growth rate of 0.3 percent in 2014. In 2013 the value of the goods and services produced was 5,634 million ( million ) compared to a value of 5,654 million in 2014. GDP can be measured by three a pproaches: production, expenditure and income, all equal. GDP by production = Output minus intermediate co nsumption (= Gross value added) plus taxes less subsidies on products minus FISIM (3.2.1) GDP by expenditure = final consumption + gross capital formation + exports of goods and services imports of goods and services (3.2.2) GDP by income = compensation of employees + gross operating s urplus (net) of corporations + taxes less subsidies on products (3.2.3) In the following paragraphs, these approaches will be analyzed. 3.2.1 GDP by production aproach GDP is the sum of gross value added of all resident producer units (institutional sectors or, alternatively, industries) plus that part (possibly the total) of taxes, less subsidies on product s, which is not included in the valuation o f output (production approach) minus fisim. GDP by production equals GDP by expendit ure equals GDP by income

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 15 The value of GDP can be read in both the Production account and Generation of Income account Table B: Gross Domestic Product 2013 2014 %change (mln ANG) By Produ ction Gross value added 5167.4 5175.3 0.2 Taxes les subsidies on products 626.0 622.1 0.6 Taxes on products 678.7 674.3 0.6 subsidies on products 52.7 52.1 1.0 FISIM 159.1 143.9 9.6 Gross Domestic Product by production, market pric es 5634.2 5653.5 0.3 By expenditure Final consumption expenditure 4488.0 4243.0 5.5 Gross capita formation 2263.8 2150.5 5.0 of which gross fixed capital formation 1285.4 1447.8 12.6 Exports of goods and services 3885.5 4084.2 5. 1 Imports of goods and services 5003.0 4824.1 3.6 Gross Domestic Product by expenditure, market prices 5634.2 5653.5 0.3 By income Compensation of employees 3355.7 3273.2 2.5 Wages and salaries 2843.7 2806.4 1.3 Employers' social co ntributions 512.1 466.8 8.8 Plus Taxes on production and imports 722.3 725.5 0.4 minus Subsidies 83.4 83.1 0.3 Consumption of fixed capital 861.2 913.6 6.1 Operating surplus, net 778.3 824.4 5.9 Gross Domestic Product by income, market prices 5634. 2 5653.5 0.3 Gross value added The Gross value added for the total economy is the total output minus intermediate consumption of all institutional sectors and industries. In 2014, the value of both the total output and total inter mediate consumption have decreased. Because intermediate consumption has decreased more than the output, it has resulted in an in crease of the GVA with 0.2 percent ( table B and figure 1). Value added by institutional sector and industry The industries that have experienced a dr op and / or a retrogression in 2014 are Agriculture, fishing and mining ( 35.1%), Manufacturing ( 1.0%), Construction ( 20.9%), Other community, social and personal service activities ( 4.7%), Public administration and defense; compulsory social security ( 4 .4%),Trade ( 3.8%), Health and social work ( 2.5%), Financial intermediation ( 0.8%), Real estate, renting and business activities ( 0.6%) .

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 16 On the other hand the industries that have experienced an increase in 2014 are Electricity, gas and water (59.2%), T ransport, storage and communications (8.0%), Hotels and restaurants (2.4%), Education (2.2%), Private households (1.8%). The drop in value added in Agriculture industry originates in the non financial corporations and government sector . T he Agriculture i ndustry in the sector HH & Npish however shows an increase in value added. The retrogression in Construction stems from non financial corporations and household. Another industry that has continued to drop in value added is Trade. This occurrence is merely appointed to the heftier fall in non financial corporations; in the sector of Hh & Npish , the value added has increa se d . The industry of Public administration and defense; compulsory social security ( government sector ) also show a retrogression in value added. The industry of other community, social and personal service activities has sustained a drop in its value added in the sectors of non financial corporations and government, while in the sector of H h & Np i s h a growth can be seen . The industry of Elec tricity, gas and water has sustained an increase in value added in the non financial corporations. Hotels and restaurants industry have turned a sustained fall in 2013 to a growth in 2014 the dominant effect is seen in non fi nancial corporations while the HH & Npish sector has sustained a drop in its production activities. Another noteworthy industry is Transport, storage and communications that has increased in its production activities in 2014, the outcome is visible in non financial corporations, governm ent and Hh &Npish.

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 17 Output In 2014 a n output of ANG 9.886 million was recorded for the total economy, a decrease of 0.2 percent compared to 2013. Figure 2 shows that the share in output by NFC and , Gov Soc.sec. have decreased ( 1.4 and 0.3 percentage points) , while the share by FC and HH &Npish have increased (0.9 and 5.9 percentage points respectively). The main culprit for th e decrease of 0.2 percent is the decline in activities in Agriculture, fishing and mining ( 19.5%); Construction ( 13%); Hotels and restaurants ( 3.8%); Manufacturing ( 2.9 %) and Electricity, gas and water ( 1.3) The decrease in the output of Agriculture, fishing and mining is mainly due to the decrease in the non financial sector and government where the output has shown a d rop . T he Construction industry shows the s econd largest decline in output. The drop in the industry is mainly originating f rom the activities in the sector of Non finan cial corporations and Hh & npish . An increase in output is shown in the industry of Other co mmunity, social and personal service activities (5.9%), followed by Transport, storage and communications (4.0%), Real estate, renting and business activities( 3.7%); the Public administration and defense; compulsory social security and Private households both showed with 1.8%. For o ther community, social and personal service activities , the increase occurred mainly in the sector of Households & Non profit institutions serving households. The upturn in Transport, storage and communications transpired mainly in the sectors of non financial corpora tions, government and Hh $ npish .

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 18 The graph (figure 3) for Total Output for 2008 to 2014 shows a nominal growth from 2008 to 2012 . Here after , the output peaked under 0% in 2013 and 2014 . (Figure 3) . Intermediat e consum p tion The intermediate consumption of the total economy represents about 47.6 percent of Gross Output in 2014. In that year a value of ANG 4.710 million was r e corded (table 17). In 2014 the share in intermediate consumptio n by NFC has dropped wit h 4 percentage points, while share by all other institutional sector have increased compared to 2013 (figure 4).

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 19 The data also shows a retrogression in intermediate consumption in 2014 of 0.6 percent with reference to 2013 (see figure 5 ). The industrie s that have influenced this retrogression are mainly Electricity, gas and water ( 23.7%), Agriculture, fishing and mining ( 10%); Construction ( 7.3%); Hotels and restaurants ( 6.8%); Manufacturing ( 4.6%) and Education ( 1.9%). Industries that experienced growth in their respective intermediate consumption are Public administration and defense; compulsory social security (20.9%); Other community, social and personal service activities (15.5%); Real estate, renting and business activities (14.7%); Health an d social work (5.7%); Financial intermediation (2.8%); and Trade (1.2%); Transport, storage and communications (1%). The re is a sharp decline in the industry Electricity, gas and water . The second largest decline in intermediate consumption ( Agriculture , fishing and mining ) is mainly originated in the non financial corporations, government, and HH & Npish . In the industry of Construction the decrease in development in 2014 is mainly influenced by the non financial corporations decrease is primarily due to a decline in non financial corporations and HH &Npish . The highest increase in intermediate consumption is in the industry of Public administration and defense; compulsory social security. Other notable industries that have s how n an increase are other community, social and personal service activities which originates from households & non profit institutions serving households and non financial corporations; the increase in

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 20 intermediate consumption in Real estate, renting and business activities originates from non financial corpor ations, government and HH & N pish . Value added net/ Gross Domestic net Value added net/Net D omestic Product is calculated by subtracting consumption of fixed capital from the value added gross/gross d omestic product. The consumption of fixed capital has increased with 6 percent (compared to 2013) to r each a value of ANG 9 14 m illion in 2014. Because GVA has increased with only 0.2 percent and consumption of fixed capital has grown faster than value adde d gross, the value added net has decreased with 1 percent. Net D om estic P roduct is calculat ed by subtracting consumption of fixed capita from GDP. In 2014, the value of Net D omestic P roduct has reduced with 0.7 percent, because consumption of fixed capit al h as increased more than the GDP (table C). Table C : Gross and Net of Value added , total economy 2013 2014 % change (mln ANG) V alue added gross 5167.4 5175.3 0.2 C onsumption of fixed capital 861.2 913.6 6.1 V alue added net 4306.2 4261.7 1.0 Gross Domestic P roduct 5634.2 5653.5 0.3 C onsumption of fixed capital 861.2 913.6 6.1 Net Domestic P roduct 4773.0 4739.9 0.7 Taxes less subsidies on products Taxes less subsidies on products are calculated by subtracting the subsidies on produ cts with the taxes on products. In 2014, both taxes on products and subsidies on products have decreased respectively 0.6 and 1.0 percent. Therefor taxes less subsidies on products has also decreased with 0.6 percent, from ANG 626 m i l lion in 2013 to ANG 62 2 m il li on in 2014. From table D it can be o bserved that import duties, excise taxes and sales tax ( omzetbelasting ) make up the major parts in the taxes on products. In 2014, a less er value of both import duties and excises has been registered, while th e value of sales tax has become larger. The only excise that has increased is the excise on beer. Al l other excises have decreased. The other taxes ( not falling under i mport duty, sales tax or excise ) has in creased.

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 21 Table D : Taxes less subsidies on pro duct s 2013 2014 % change (mln ANG) Import duties 162.4 160.4 1.2 Excise on gasoline 56.0 49.1 12.4 Excise on beer 10.8 11.0 1.3 Excise on liquor 13.0 12.7 2.5 Excise on tobacco 14.5 11. 8 19.1 Sales tax 390.2 391.9 0.4 Stamp taxes 4.8 5.9 22.9 Property transfer tax 14.5 16.1 10.8 Hotel room tax 10.1 12.0 18.4 Other taxes on products 2.2 3.5 57.2 total taxes on products 678.7 674.3 0.6 subsidies on products 52.7 52.1 1.0 Taxes l ess subsidies on products 626.0 622.1 0.6 Financial intermediation indirectly measured ( FISIM ). This is equal to the total property income receivable by financial intermediaries minus their total interest payable, excluding the value of any property inc ome receivable from the investment of their own funds; as such income does not arise from financial intermediation. The FISIM has decreased with almost 10 percent, from ANG 15 9 million in 2013 to ANG 144 million in 2014 (see table B) . After deducting FIS IM (Financial Intermediation Services Indirectly Measured) and adding taxes minus subsidies to the Gross value added , the GDP for 2014 shows stagnant growth of 0.3 percent. 3.2.2 GDP by expenditure approach Calculating GDP from the expenditure side means one has to sum up the expenditures on final products. These expenditures on final products fall into several categories (see table E) : Final consumption expenditures Gross capital formation and Net exports In the next sub paragraphs the components of the GDP by expenditures are analyzed.

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 22 Table E: Gross domestic Product by expenditure 2013 2014 % change (mln ANG) Final con sumption expenditure 4488.0 4243.0 5.5 Gross capital formation 2263.8 2150.5 5.0 Exports of goods and services 3885.5 4084.2 5.1 Less: Imports of goods and services 5003.0 4824.1 3.6 Equals: GROSS DOMESTIC PRODUCT 5634.2 5653.5 0.3 Gross ca pital formation 2263.8 2150.5 5.0 Gross fixed capital formation 1285.4 1447.8 12.6 Changes in inventories 978.4 702.7 28.2 Exports of goods and services 3885.5 4084.2 5.1 Exports of goods 1255.6 1238.6 1.4 Exports of services 2629.9 2845.6 8.2 Less: Imports of goods and services (=net exports) 5003.0 4824.1 3.6 Imports of goods 3412.2 3255.5 4.6 Imports of services 1590.8 1568.6 1.4 Final consumption expenditure From table E it is observed that the value of final cons umption expenditure has reduced with almost 6 percent compared to 2014. T he mayor contribution in total final consumption comes from the HH & NPISH (79%) while a smaller part comes f rom the government sector (21%) (table F). Final consumption expenditures c an be obtained in two ways (table F) : 1. As a sum of household & NPISH , where the major part of their expenditure is not financed by the government, and government consumption expenditures 2. As the sum of individual and collective consumption Ad1) In 2014, t he private a nd public consumption together i s A NG 4,243 million, which represent a decline of almost 6 percent compared to 2013 . The private consumption of household & NPISH has decremented with almost 9 percent, in comparison with an increase of the gover nment consumption of almost 10 percent. (table F) . Ad2) Private consumption of HH & Npish are individual consumption expenditures. Consumption expenditures of government are split up in individual and collective consumption. Hence, the individual consumpt ion expenditures of the total economy is the sum of co nsumption of household & NPISH and individual consumption financed by the general government sector.

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 23 Table F: Final consumption expenditure 2013 2014 % change (mln ANG) Final consumption e xpenditure 4488.0 4243.0 5.5 Individual consumption (HH& Npish) 3683.1 3359.3 8.8 General government final consumption expenditure (individual & collective) 804.9 883.7 9.8 Final consumption expenditure 4488.0 4243.0 5.5 Indi vidual consumpt ion expenditure ( HH & Npish + G ov) 4105.3 3810.7 7.2 Coll ective consumption expenditure G ov 382.7 432.2 12.9 Individual consumption expenditures by HH & NPISH consists among others of food, clothing, rents, rents of owner occupiers, goods and service s provided for income in kind. Individual consumption by government are the production of services by government for the benefit of individual households and the purchase of goods and services by government from other producers which are then passed on to households, either free or at low cost (health and education). From figure 6 , it can be observed that the total individual consumption makes up for more than 90 percent of total consumption of which 79 percent belongs to household & NPISH and 11 percent t o the government. (fig. 6 ) The collective consumption expenditure by government does not involve the purchase of goods and services for delivery to households. In 2014, the collective consumption expenditure i s about 10 percent of total consumption expend itures. ( Figure 6 ).

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 24 Gross capital formation Gross capital formation or investment is part of the capital account and is the sum of gross fixed capital formation and changes in inventories. Gross fixed capital formation (GFCF) is defined as the acquisi tion (including purchases of new or second hand assets) and creation of assets by producers for their own use, minus disposals of produced fixed assets. The relevant assets relate to products that are intended for use in the production of other goods and s ervices for a period of time of more than a year. Gross fixed capital formation by institutional sector and industry In 2014, the GFCF has increased with more than 12 percent compared to a drop in 2013 of about 15 percent, while the value of changes in i nventories has reduced with 28 percent in 2014. For this reason, the gross capital formation has dropped with 5 percent (table E ). The increase in the GFCF is a result of an increase all the institutional sectors . The industries of Agriculture, fishing and mining and Electricity, gas and water have experienced a major growth in GFCF in 2014. Alongside other industries that also showed an increase but to a lesser degree. The only industries that have show n a decline in their activities regarding capital f ormation are the Hotels and restaurants, Transport, storage and communications and Real estate, renting and business activities. Net exports Net exports is calculated by subtracting the imports of goods and services by the exports of goods and services. Exports of goods and services has grown faster than imports of goods and services in 2014, therefor the net exports has increased with almost 34 percent, from ANG 1.2 billion to ANG 0.7 billion in 2014 . (table E ). More details on exports and imports for 2014 are given in chapter 4.5. 3.2.3 GDP by income approach GDP by income approach equals GDP by production approach equals GDP by expenditure approach. GDP by income has the following components (figure 8) : Compensation of employees Taxes less subs idies on production and imports Consumption of fixed capital Operating surplus, net

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 25 Compensation of employees Compensation of employees consists of all payments in cash, as well as in kind (such as food and housing), to employees in return for services ren dered, and government contributions to social insurance schemes such as social security and pensions that provide benefits to employees. Compensation of employees is the most important part of the GDP by income and it consist of the wages and salaries , and social contributions. The share of compensation of employees to GDP has decreased from almost 60 percent of GDP in 2013 to almost 58 percent in 2014 (figure 7 ). F rom figure 8 it can be observed that in 2014 the share of wages and salaries and socia l contributions to compensation of employees are 86 and 14 percent respectively .

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 26 W ages and salaries Wages and salaries are the most important part of the compensation of employees . In 2014 1 percent les s wages and salaries have been paid. By a nalyzing figure 9 , it is observed that the contribution of NF C in wages and salaries ha s remained constant in both years (63%), while the contribution of both gov ernment (incl. soc ial sec urity .) and FC have decreased. Wages and salaries in hat of HH & NPIS H has slightly increased. . C ompensation of employees by in stitutional sector and industry In this segment, compensation of employees by industry and institutional sector will be considered. In 2014, compensation of employees has deteriorated to 2.5 percent ( table B ) . Both the wages and salaries and the

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 27 employers social contribution has contributed to the lack of increase in 2014 with respectively 1.3 and 8.8 percent. The industr ies of Agriculture, fishing and mining and Con struction have experienced a two digits drop of respectively 20 and 14 percent. Other noticeable drops are seen in the trade industry with about a 5 percent decrease compared to the year before ; Compensation of employees in Public administ ration and defens e, compulsory social security dropped with around 4 percent. The industries of Hotels and restaurants (1.4%) , Transport, storage and communications (3.3%) and Other community, social and personal service activities (4.6%) are the only industries that have shown a sign of growth within the Compensation of employees. The growth in these industries is mostly rendered to Non financial corporations; for other community social and personal service activities however, in addition to the No n financial corporation s, the Hh & N pish has also contributed to its growth. Other taxes and subsidies on production Total taxes less subsidies on production consist of taxes less subsidies on products (= taxes on products minus subsidies on products) and taxes les subsidies on production (= taxes on production less subsidies on production). Taxes on products and subsidies on products are already analyzed in paragraph 3.2.1 Other taxes on production The value of this category of taxes has gone up with almost ANG 8 million, from ANG 44 million in 2013 to ANG 51 million in 2014. The type of taxes belonging to this category which are responsible for this growth are the leg al charges and license fees for construction . Th ese h ave more than d oubled in value. Motor vehicle tax paid for company cars has increased slightly (1.4%), while taxes on the ownership and use of land has deceased The other types of taxes have decreased (6%) (see table G) . The introduction of the OZB in January 1 , 2014 does not affect the value ownersh which the OZB belongs . Other subsidies on production The level of subsidies on production has stayed almost the same in 2014. In both 2013 and 2014, a value of ANG 31 million w as registered.

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 28 Table G. Other taxes on prod uction 2013 2014 Mln ANG Legal charges and license fees (for construction) 8.9 18.1 Motor vehicle tax paid for company cars (incl. sale of license plate 7.3 7.4 Taxes on the ownership and use of land 27.4 25.7 Total 43.6 51.2 Consumption of fi xed capital The consumption of fixed capital for the total economy has increased with 6 percent to reach a value of ANG 914 mi llion in 2014. In 2013 the value was ANG 861 m illion (table B). Operating surplus, net Consequently, due to above mentioned deve lopments, the n et operating surplus for the total economy has increased with almost 6 percent, from ANG 778 million in 2013 to over ANG 8 24 million in 2014 (table B). 3.3 Gross National Income Gross National Income (GNI) is equal to Gross Domestic Produ ct plus primary income receivable from abroad minus primary income paid to abroad. Table H : Gross National Income 2013 2014 % change (mln ANG) Gross Domestic Product 5 , 634.2 5 , 653.5 0.3 Primary income received from abroad 175.8 222.8 26.7 Pri mary income paid to abroad 272.1 272.0 0.0 Gross National Income 5 , 537.9 5 , 604.3 1.2 Primary income received from abroad consist s of compensation of employees received from abroad and property income received from abroad. Both components have increased in 2014, resulting in an increase in the primary income received from abroad (27%) , ( table H) . The primary income paid to abroad has remained almost constant in 2014. However, by analyzing the components it is remarkable that the compensation of employees paid to abroad has enlarged with almost 62 percent, while the property income paid to abroad has decreased with almost 3 percent.

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 29 As a result of the increase in the GDP and the primary income received from abroad, the Gross National Income (GNI) has incr eased with almost 1.2 percent (from ANG 5,538 million in 2013 to ANG 5,604 million . in 2014) , ( table H) . Property income GNI can also be measured by adding the net primary income of the total economy to GDP (see table I). Table I. GDP, Net primary inco me and G NI Mln ANG 2013 2014 GDP 5634.2 5653.5 primary income received 4302.8 4061.6 primary income , paid 4399.1 4110.8 net, primary income 96.3 49.2 GNI 5537.9 5604.3 The most important part of the primary income (compensation of e mployees) is already analyzed (see 3.2.3). The other part is the property income received and paid by institutional sectors. Property income consist s mainly of interest, distributed income of corporations, property income attributed to insurance policy hol ders and rent. (table J) In 2014 the value of property income received was ANG 728 million. More than 67 percent consists of interest that represents a value of ANG 489 million. The value of the p roperty income that was paid amounted ANG 8 38 million of wh ich 488 consists of interest (table J.) Table J.Property income, total economy Mln ANG 2014 Property income, received 728.0 Interest 488.8 Distributed income of corporations 106.0 Property income attributed to insurance policy holde rs 112.3 Rent 21.0 Property income. Paid 837.6 Interest 487.5 Distributed income of corporations 216.9 Property income attributed to insurance policy holders 112.3 Rent 21.0

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 30 3.4 Gross National Disposable Income Gross Nati onal Disposable Income (GNDI) is equal to Gross National Income plus current transfers received from abroad minus current transfers paid to abroad. Table K shows that the GNDI has increased with 2 percent in 2014, from ANG 5, 407 in 2013 to ANG 5 , 518 in 201 4. This growth is the result of the increase in the current transfer received from abroad, which has augmented with 4 percent. The light increase of 1.2 percent in GNI has also contributed to the, although small, increase of GNDI. Table K. Gross Nationa l Disposable Income 2013 2014 % change (mln ANG) Gross National Income 5537.9 5604.3 1.2 Current transfers received from abroad 396.0 411.9 4.0 Current transfers paid to abroad 527.2 498.2 5.5 Gross National Disposable Income 5406.7 5518.1 2. 1 3.5 Gross Saving The balancing item of the use of income account is Saving. As already mentioned the Gross National Disposable Income has increased with 2.1 percent. Final consumption, which is being subtracted from the GNDI to arrive at Gross Savin g , has diminished with almost 6 percent. Consequently, Gross Saving has increased with almost 39 percent; from ANG 9 18 million billion to ANG 1. 275 million in 2014 (table L). Table L. Gross Saving , Curaçao 2013 2014 2013 2014 %change (mln ANG) Gross National Disposable Income 5406.7 5518.1 2.1 Final consumption 4488.0 4243.0 5.5 Households & Non profit institutions serving households 3683.1 3359.3 8.8 Government (incl. Social security) 804.9 883.7 9.8 Gross Saving 918.7 1275.1 3 8.8 3.6 Gross National Income, per capita (GNI per capita) The Gross National Income per capita is equal to the GNI divided by the midyear population 3 . Midyear population or mean population is the estimated population size in the middle of the year. 3 In this publication population estimates a re based on the Census 20 11 and population registry data

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 31 I n 2013 the value of GNI per capita was ANG 36 .0 thousand and in 201 4 it has d ecreased with a rate of less than 1 percent to reach a level of ANG 35. 9 thousand in 2014 (figure 10 ) . This is the result of a faster growth of the population (2%) compared to the growth of the GNI (1.2 %).

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 32 4 . Developments by institutional sector in 2014 In this chapter some indicators will be analyze for the following institutional sector accounts : non financial corporation sector (NFC ) (table 12). financial corporation sector (FC) (table 13). government & social security (GOV & Soc.Sec.) (table 14 & 15). household & non profit institutions serving households (HH&Npish) table 16). A t the end of this chapter an analysis is given for the rest of the world account (table 18). Th e indicators that will be analyzed are among others the output, intermediate consumption; value added gross/net, compensation of employees, other taxes less subsidies on production and property income . 4.1 The Non Financial corporation sector This section discusses the non financial corporations sector, including quasi corporations (NFC). The NFC includes corporations that produce non financial goods or services at market prices. The focus is on the developme nts for the year 2014, however, where necessary, developments in previous years are discussed. First the production account is presented: the market output and the intermediate consumption of the NFC, followed by the gross value added as balancing item, th e consumption of fixed capital, reaching the net value added. The production account is followed by the distribution and use of income account, namely the generation of income account and the allocation of primary income account. The generation of income account contains data social contribution), other taxes on production, and other subsidies on production. The balancing item is the net operating surplus. The allocation of primary inc ome account contains information regarding property income. At last, gross fixed capital formation, which pertains to the capital account, is discussed. Market output has decreased from almost ANG 6348 million in 2013 to almost ANG 6256 million in 2014. T his decrease of ANG 92 million can be attributed to mainly declined output in the construction sector. Output in this

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 33 industry declined by ANG 83 million. Beside the fall in the construction sector, output has declined in manufacturing (ANG 31 million), ho tels and restaurants (ANG 17 million) and trade (ANG 12 million), but has ncremented in transport, storage and communication (ANG 50 million) and real estate, renting and business activities (ANG 19 million). The decreased intermediate consumption in 2014 in comparison to 2013 from almost ANG 3430 to ANG 3297 million is mainly due to a quite strong diminishment of expenditures in the utilities sector. T he intermediate consumption decreased from ANG 419 to ANG 320 million, which is especially caused b y the decrease in international oil prices in 2014. Other industries that have experienced a fall in intermediate consumption in 2014 are construction (ANG 30 million), manufacturing (ANG 26 million), hotels, and restaurants (ANG 22 million). An inc line of almos t ANG 15 million i s experienced by health and social work. As a consequence of a bovementioned developments of output and intermediate consumption, gross value added has increased (ANG 40 million) to nearly ANG 2959 million in 2014. Figure 1 1 shows the gro ss value added for 2013 and 2014 per industry. The main development behind this increment is the strong increase of value added in the utilities sector (ANG 155 to 246 million, due to decreased intermediate consumption). The increase at transport and commu nications (ANG 562 to 604 million, because of increased market output) also contributed to the raised gross value added. The decrease within the construction industry, where value added has gone down from ANG 246 to ANG 193 million, is also remarkable. Th is is a diminishment of almost 22 percent (mainly due to decreased output). Furthermore , value added declined in the trade sector also, from almost ANG 538 million in 2013 to ANG 516 in 2013 (due to declined output).

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 34 The consumption of fixed cap ital has increased from ANG 577 to 585 million, bringing the net value added to a level of nearly ANG 2374 million in 2014, an increase of almost ANG 33 million. The compensation of employees is the sum of wages and salaries and ution. Wages and salaries decreased from ANG 1781 to 1756 million, mainly caused by a strong decline in the construction sector. The expenditures on wages and salaries in this sector went down from ANG 188 to 151 million, a decrease of ANG 37 million (20 %) which is the result of a drop in employment in construction. has also decreased; from ANG 315 million in 2013 to ANG 290 million in 2014. This decline is mainly due to a downfall at trade industry by ANG 30 million (ANG 57 to ANG 27 million). As a result of the abovementioned changes, the compensation of employees has gone down from ANG 2097 to ANG 2046 million. Other taxes on production incremented by ANG 7 million in 2014 compared to 2013, while other subsidies on produ ction have remained at the same level

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 35 at ANG 31 million. The increment of other taxes on production is ascribable to an increase in fees on building permits (construction sector) of ANG 8 million. Consequently, to the increased net value added, decreased compensation of employees and slight increase of other taxes on production, net operating surplus has increased from almost ANG 248 million in 2013 to a little over ANG 324 million in 2014, an increase of more than 30 percent. The level in 2013 implies a f all of over 30 percent compared to the level in 2012 and of more than 50 percent compared to the level in 2011. Property income consists of interest and distributed income of corporations. Property income has decreased from ANG 326 in 2013 to ANG 298 mill ion in 2014 (almost 9% decline ). The decline is the consequence of a reduction of the distributed income (decline from ANG 191 in 2013 to ANG 174 million in 2014) and of interest income (decline from ANG 135 to ANG 125 million). As can be seen in figure 1 2 , in 2013, gross fixed capital formation was relatively low; merely ANG 443 million, the lowest level in at least six years. In 2014, gross fixed capital formation increased to ANG 516 million, an increase of over 16 percent. The higher levels of gross fix ed capital formation are attributable to increases at the industries utilities and trade in particular. At the utilities industry gross fixed capital formation almost doubled from ANG 43 to 83 million. At trade, gross fixed capital formation has increased from ANG 70 in 2013 to almost ANG 103 million in 2014.

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 36 4.2 The Financial corporation s ector T he financial corporations sector including quasi corporations (FC) are corporations engaged in financial intermediation and in auxiliary financial activities. A quasi corporation is an unincorporated enterprise that functions as a corporation in the sense that it has a complete set of accounts consisting of profit and loss accounts and balance sheets, and must be able to make independent decisions. Example of corp orations in the FC are banks, insurance companies and pension funds. Value added gross and value added net The gross value added of the FC is about 16 percent o f the value added of the total economy. Table M : Gross v alue added , Financial corporations 2 013 2014 %change Mln ANG Output 1597.4 1611.8 0.9 Intermediate consumption 752.6 774.0 2.8 Value added, gross 844.8 837.8 0.8 Consumption of fixed capital 7 0 .4 6 7. 5 4 . 1 Value added, net 7 74 .4 77 0 . 3 0.5 From table M it is observed that the gr oss value added of the financial sector has decreased with 0.8 percent , from ANG 845 million in 2013 to ANG 838 million in 2014. The reason for this is that both intermediate consumption h a s increased more than the output, respectively 0.9 and 2.8. Value added net is obtained by subtracting the consumption of fixed capital from the value added, gross. Value added net has decreased with 0.5 percent from ANG 7 74 million in 2013 to 7 7 0 million in 2014. Both value added gross and consumption of fixed capital has diminished . ( 0.8 and 4.1 respectively (see table M). Com pensation of employees Compensation of employees comprises of wages, salaries, and social contributions. Table N: Compensation of employees , Fi nancial corporations ) 2013 2014 % change (mln ANG) Compensation of employees 597.9 574.1 4.0 wages and salaries 541.1 525.8 2.8 employer's social contributions 56.8 48.3 15.0

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 37 Compensation of employees has decreased with 4 percent, from ANG 598 mill ion in 2013 to ANG 574 million. As can be read from table N both wages have d ecremented in 2014. The contribution of w ages and salaries to compensation of employees has increased from 91 percent to almost 92 percent, while the contribution of 2014 (f igure 13 ) . Gross Fixed C apital F ormation Gross fixed capital formation (GFCF) has increased with 13 percent in 2014, from ANG 497 million to ANG 562 million in 2014. In figure 1 5 it is observed that the share of the various components in the GFCf has nearly changed in 2014 (figure 14).

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 38 4.3 The government sector and social security This sector consists mainly of central, state and local government uni ts together with social security funds imposed and controlled by those units. In addition, it includes NPIs engaged in non market production that are controlled and mainly financed by government units or social security funds (System of National Account 19 93, art. 4.9). General Government Government units may be described as unique kinds of legal entities established by political processes, which have legislative, judicial or executive authority over other institutional units within a given area. The go vernment finances their provision out of taxation or other income, they redistribute income and wealth by means of transfers and they engage in non market production. (System of National Account 1993, art. 4.104). Value added gross Value added of general government is output minus intermediate consumption. The output consist of market output and non market output. Market output has declined with almost 9 percent in 2014, from ANG 217 million in 2013 to ANG 198 million in 2014. Non market output has increa sed from ANG 69 5 million in 2013 to ANG 710 million in 2014. Consequently, the total output has declined with ANG 3.2 million in 2014. Intermediate consumption has increased from ANG 27 7 million in 2013 to ANG 303 million in 2014, a n increase of 9.6 perc ent. This increase is noticed in the sectors Public administration, Health and Other Services. Due to the developments in both the output and intermediate consumption, V alue added gross has decreased with 4.7 percent, from ANG 635 million in 2013 to ANG 6 05 million in 2014. Value added net has declined from ANG 571.0 million in 2013 to ANG 542.1 million in 2014 (5.1%). Value added net equals Value added gross minus Consumption of fixed capital. Consumption of fixed capital is more or less the same in 2014 as in 2013. Compensation of employees has decreased with 5.1 percent. The reason for this is a decrease in the number of civil servants with 103 (2.9%). Property income has decreased with ANG 1.4 million. The interest that the government has paid to fo reign countries has decreased with ANG 35 million

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 39 while the interest paid on the internal debt has augmented with ANG 21 million. Gross Fixed Capital Formation has increased with ANG 22.1 million (10.7%) in 2014, compared to 2013 when an incre ase was ANG 128.8 million (166.6%) compared to 20 13. Acquisition and major maintenance of dwellings and an increase in acquisition of office equipment have led to this augmentation. Taxes on production and imports have incremented by ANG 3.2 million in 2014 compar ed to 2013, an increase of 0.4 percent. Taxes on production and imports consists of taxes on products and other taxes on production (figure 16) . Taxes on products ha ve decreased with ANG 4.4 million due to a decline in import duties and excise taxes. In 20 14 import duties have experienced a fall of 1.2 percent while excise on gasoline has made a downfall of 12.4 percent and excise on tobacco and tobacco products decreased with 19.1 percen t. Other taxes on production have increased with ANG 7.6 million in 20 14 mainly because of an augmentation in administrative fees.

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 40 P roperty income has increased with ANG 9.1 million in 2014 compared to 2013, but the value is almost at the same level as in 2012. Dividends received, rent and interest has increased in 2014. Social Security Social security is a scheme of old age , unemployment , health , disability , and survivors insurance. Social security schemes are imposed and controlled by government units for the purpose of providing social benefits to members of the community as a whole, or of particular sections of the community. The social security funds established for this purpose are separate institutional units organized and managed separately from other government funds. Their receipts consist mainly of contri butions paid by individuals and by employers on behalf of their employees, but they may also include transfers from other government funds. (System of National Account 1993, art. 8.64). The Social Insurance Bank (SVB) is the authority for social security in Curaçao and is entrusted with the following insurances: Health care insurance (BZV) Old age pension (AOV) and widow(er) and orphan pension (AWW) General insurance exceptional medical expenses (AVBZ) Sickness and accident insurance (ZV and OV funds) Sev erance act (Cessantiaverzekering)

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 41 Value added gross and value added net The output of social security consists only of non market output, which has in creased with 0.8 percent in 2014 , compared to 2013 . Intermediate consumption has decreased with almost 2 percent in 2014. Because of these developments, the Value added gross has increased with 2.5 percent. Value added net has increased from ANG 34.8 million in 2013 to ANG 35.7 million in 2014 (2.5 %). Value added net equals Value added gross minus Consumpt ion of fixed capital. Consumption of fixed capital is more or less the same in 2014 as in 2013. Compensation of employees has increased with 2.5 percent in 2014. Wages and salaries ha ve decreased with ANG 0.1 million and emp contributions h ave increased with ANG 0.9 million. Social benefits other than social transfers in kind has increased in 2013 with ANG 320.4 million (51.6%). In 2014, there is a slight increase of these social benefits (7.3%). As of February 1, 2013, the Basic Health In surance (BVZ) went into effect for all residents of Curaçao. The BVZ was introduced with the aim to harmonize the health care legislation into one coherent system and to provide basic health care for all citizens of Curaçao. Those who were privately insure d before February 1, 2013 are exempt. 4.4. H ousehold & N on profit institutions serving households In this paragraph, an analysis is given for the combined sector of HH & NPISH (table 16). Because the NPISH sector is a small sector, it is almost impossib le to make a thorough analysis of it, thus it is combined with the HH sector . Output Compared to 2013 the total output of HH & Npish in 2014 has increased with ANG 59.9 million or 6 percent, caused by the growth of two of the three non Figure 1 7 ) . In contrast to the se two has declined, albeit relatively slightly by ANG 3.1 million (Figure 18). Industries that are re sponsible for the growth in total output in this institutional

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 42 anufact u r (12%), agriculture and fishery (14%) I nter mediate consumption Intermediate consumption has increased with almost 21 percent from ANG 273 million in 2013 to ANG 330 million in 2014. Industries whose values have augmented are uring Transport, storage and communications with a total of 28.4 percent. On the other hand, the value of y have decreased with a to tal of 27.8 percent . Gross value added and Net value added Resulting from the development in 2014 of total output and intermediate consumption, described earlier, there was a slight growth of 0.4 percent in the gross value added . This percentage represen ts a nominal growth of approximately ANG 3.1 million, from approximately ANG 73 4 million in 2013 to approximately ANG 737 million in 2014. fixed capital. The consumption of fixed cap & NPISH has increased from ANG 149 million in 2013 to ANG 19 7 million in 2014, a significant increment of 32 percent. Due to growth in 2014 of the consumption of fixed capital, the Net value added for the year 2014 ( ANG 540.0 million) actually turns out to be

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 43 somewhat lower compared to the year 2013 ( ANG 584.9 million), a decrease of 8 percent. Compensation of employees: The compensation of employees Wages and salaries paid by NPISH have increased with 39 percent in 2014, from ANG 47.6 million in 2013 to ANG 66.3 million in 2014. Table O . Compensation of employees , H ouseholds & NPISH 2013 2014 %change (mln ANG) Wages and salar ies (paid) 47.6 66.3 39.3 Employers' social contributions (paid) 7.9 9.5 20.3 Total 55.5 75.8 36.6 Wages and salaries (received) 2891.4 2866.8 0.8 Employers' social contributions (received 512.1 466.8 8.8 Total 3403.4 3333.6 2.1 I n 2014, 0 percent, from 8 million to 10 million in 2014. As a result of the increase in both the wages and employees has increased fro m 56 to 76 million ANG in 2014 (see table O) . All the compensation of employees that are paid by institutional sectors are received by households. In 2014, households have received 0.8 percent less Wages and salaries and almost 9 percent less social contributions from other institutional sectors. As a result, the total compensation of employees that household have received has decreased with 2.1 percent, from ANG 3 4 03 million in 2013 to ANG 3334 million in 2014 (table O). Table P gives an overv iew from which institutional sector the compensation of employees were received. Table P . Compensation of employees by institutional sectors Mln ANG Wages and salaries Employers social contribution Total compensation of employees NFC 1737.3 2 89.7 2026.9 FC 525.8 48.3 574.1 GOV incl. social security 458.4 119.3 577.8 HH & NPISH 66.3 9.5 75.8 ROW 79.0 79.0 Total 2866.8 466.8 3333.6

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 44 Other taxes on production NPISH At a level of ANG 16.5 million in 2014 c ompared to ANG 16.2 million in 2013, can be qualified as reasonably stable in 20 14. Through the years (from 2008 2014) this figure has been slightly fluctuating, with the lowest value of ANG 13.8 million in 2011 and the highest of ANG 17.7 million in 2007, and with an average of ANG 15.7 million. Property Income Viewed from the uses side of the National Accounts, Property income of HH & NPISH , 7.5 percent less interest is paid by H H & NPISH (to financial institutions), while th e amount paid for rent to government has inc reased with almost 18 percent. As a result of these two developments, the total property income paid by HH & NPISH has declined by 4.5 percent in 2014, from ANG 147 million in 2013 to ANG 14 1 million in 2014. Viewed from the resources side of the National Accounts, Property income is n 2014, while has gone down ANG 28 5 million in 2013 to ANG 112 million in 2014. As a result of these two developments, Property income in 2014 has gone from ANG 319.0 million in 20 13 to ANG 147 million in 2014. Gross fixed capital formation Gross Fixed Capital Formation has increased with 1.5 percent from ANG 138.7 million in 2013 to ANG 140.8 million in 2014. Acquisition and major maintenance of dwellings has led to this increase, 4.5 Rest of the world account Introduction In this paragraph, a brief analytical description will be given of the external transactions developments of the Rest of the World ( ROW ) account for the island of Curaçao in the year 2014. The Rest of the World account refers to a full range of transactions that take place between the total economy of a country and the rest of the world according to the definitions and concepts of

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 45 the System of National Accounts 4 (SNA). The analysis of the ROW account figures are based on the year 2014 compared to the previous year unless stated differently in the text. The ROW account has an accounting structure similar to that of an institutional u nit, in which the relevant accounts capture both transactions taking place between the resident institutional sectors of the total economy and transactions with non resident units that make up the rest of the world. The viewpoint of the ROW account is esta blished from the rest of the world. vice versa. Transaction Developments in 2014 Export s of Goods and Services The total export s ha ve increased from 3886 ANG million in 2013 to ANG 4084 million in 2014. This increase is 198 ANG million (5%) compared to 2013. In 2013, the total export s have decreased with about 8 percent, compared to 2012. The export s of goods, which include general merchandise, oil, and other goods ha ve decl ined with ANG 17 million in 2014 ( figure 18 ). The decrease of 1 percent in export s of goods is due to the lower re exports by free zone companies in the year 2014. The augmentation in export s of services is ANG 216 million which leads to a total value of ANG 2846 million in 2014. The total export s of services in Curaçao ha ve increased with 8 percent. The increase in export of services is due to the higher received foreign exchange earnings from the tourism sector (Travel), and the International financial services (offshore) which increased in 2014. 4 System of National Accounts 1993 (SNA), Publication prepared under the auspices of the United Nations, Inter national Monetary Fund, Commission of the European Communities, Organization for Economic Co operation and Development, and World Bank, 1993

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 4 6 Import s of Goods and Services The total import s have decreased with about 4 percent in 2014. In 2013 and 2014 the total import s ha ve decreased with respectively ANG 599 million and 179 ANG million., com par ed to the previous year (figure 19). The decline of the total import s is a result of a decline in the import of goods. This can be deduced from the decrease in imports of general merchandise, goods for processing, and repair on goods in 2014. Less economic activities have been noted in the free zone as well. The total import of services has decreased with ANG 22 million guilders in 2014. This represents a decline of about 1 percent. The de crease in import of services has been attributed to the foreign excha nge outflow from Curaçao for payments of transportation services for either air or sea, the construction services, communication services, and computer and information services in 2014.

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 47 Primary incomes and current transfers Compensation of employees refers to the earnings of border, seasonal and other workers paid by an employer resident in one economy to employees resident in other economies, such as military personnel abroad, and embassy employees. The compensation of employee transfers to Curaçao f rom abroad has increased with nearly ANG 20 million in 2014. The transfer of labor income from Curaçao to abroad has augmented from about ANG 12 million to more than ANG 18 million in 2014 (Table 18). This represents an increase of more than 60 percent in wage transfers of local institutions to workers abroad. The received amount from abroad for property income has increased with roughly 27 million in 2014, an augmentation of 23 percent compared to 2013. In 2014, the interest paid by foreign compani es is about ANG 82 million, which is a n increase of about 14 percent, compared to 2013. The interest income earning by local companies on their foreign deposits has increased to approximately 61 million in 2014. The received distributed income of corporati ons (dividend) from abroad has augmented with nearly 39 percent in 2014. The property income paid to abroad declines from ANG 261 million to ANG 253 million in 2014. The interest paid to abroad has remained almo st the same compared to 2013, t he decline of the interest paid is minimal in 2014. The transfer of dividend to abroad has slightly decreased with nearly ANG 7 million . This is a drop of 4 percent in 2014. The current taxes on income refer to profit taxes paid by offshore companies. The se taxes from a broad have increased with nearly ANG 19 million in 2014.

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 48 The current taxes on income show an increase in 201 4 after a drop in 2012 and 2013 The other current transfers received from abroad have been about 1 percent less in 2014, a decrease of ANG 3 m illion. The other current transfers to abroad have declined with 29 million to a value of ANG 498 million. Capital Account The Investment grants received from abroad usually are development aid for investment projects from the Netherlands. In 2014 the re ceived investment grants from abroad have decreased with about 26 million ( figure 2 0 ). This means a drop of about 63 percent in grants. from countries abroad. In 2014, t he other capital transfers to abroad from Curaçao have decreased from nearly ANG 16 million to about ANG 5 million. The value of the other capital transfe r has accumulated to ANG 4 million in 2014, a decline of about ANG 6 million ( figure 2 1 ). This means less capital transfers have paid to abroad in 2014 compared to the previous year.

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 49

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 50 Tables

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 51 Table 1 Total economy, product, income, Saving and net lending, Curaçao ( million ANG) 2008 2009 2010 2011 2012 2013 2014 Output 8613.6 8913.9 9266.1 9670.4 10387.8 9905.8 9885.7 Less: financial intermediation services indirectly measured 125.4 131.8 144.1 148.6 152.6 159.1 143.9 Plus: taxes less subsidies on products 535.2 548.7 540.8 554.9 576.0 626.0 622.1 Less: Intermediate consumption 3951.5 4195.0 4379.8 4637.4 5206.5 4738.4 4710.4 Gross Domestic Product 5071.9 5135.8 5282.9 5439.3 5604.7 5634.2 5653.5 Primary income received from abroad 202.6 161.8 198.5 197.8 172.4 175.8 222.8 Primary income paid to abroad 215.2 248.3 210.6 221.6 250.1 272.1 272.0 Net factor income received from abroad 12.6 86.5 12.1 23.8 77.7 96.3 49.2 Gross National Income 5059.3 5049.3 5270.8 5415.5 5527.0 5537.9 5604.3 Cur rent transfers received from abroad 589.8 981.7 722.4 526.8 430.2 396.0 411.9 Current transfers paid to abroad 475.0 516.0 571.5 573.1 539.1 527.2 498.2 Net current transfers received from abroad 114.8 465.7 150.9 46.3 108.9 131.2 86.3 Gross Nationa l Disposable Income 5174.1 5515.0 5421.7 5369.2 5418.1 5406.7 5518.1 Final consumption 4107.4 4351.4 4533.8 4450.6 4598.6 4488.0 4243.0 Households & Non profit institutions serving households 3295.2 3506.5 3677.8 3643.6 3775.9 3683.1 3359. 3 Government (incl. Social security) 812.2 845.0 856.0 807.1 822.6 804.9 883.7 Gross Saving 1066.7 1163.5 887.9 918.6 819.5 918.7 1275.1 Net Saving 543.1 505.6 284.2 138.7 6.5 57.5 361.5 Gross fixed capital formation 1411.1 1390.0 1535.7 1413.0 1526.3 1285.4 1447.8 Consumption of fixed capital 523.6 658.0 603.7 779.9 813.1 861.2 913.6 Changes in inventories 963.7 592.8 947.1 951.3 839.8 978.4 702.7 Capital transfers received 289.7 294.1 341.2 262.8 188.6 185.3 143.1 Capital tr ansfers paid 245.4 253.4 286.2 167.0 139.9 138.5 126.7 Net capital transfers received 44.3 40.7 55.0 95.8 48.7 46.8 16.4 Net lending from abroad 1263.8 778.5 1539.9 1349.9 1497.9 1298.2 859.0 Table 2 Income per capita, Cu raçao ( million ANG, unless otherwise specified) 2008 2009 2010 2011 2012 2013 2014 Gross National Income, market prices 5059.3 5049.3 5270.8 5415.5 5527.0 5537.9 5604.3 Net national income, market prices 4535.7 4391.3 4667.1 4635.6 4713.9 4676 .7 4690.7 Mid year population (x1000) 145.9 146.8 148.7 150.8 152.1 153.8 156.9 Per capita Gross National Income, market prices (ANG) 34681.0 34388.0 35445.1 35904.2 36340.6 36002.2 35715.2 Per capita Net National Income, market prices (ANG) 31091.7 299 06.9 31385.3 30733.7 30994.6 30403.3 29892.9 Other taxes on production 39.8 49.1 43.9 42.4 41.3 43.6 51.2 Other subsidies on production 25.0 25.0 31.0 29.9 30.3 30.7 31.0 Consumption of fixed capital 523.6 658.0 603.7 779.9 813.1 861.2 913.6 Net na tional income, basic prices 4550.5 4415.4 4680.1 4648.2 4724.9 4689.6 4710.9 Per capita Net National Income, basic prices (ANG) 31193.0 30070.8 31472.5 30817.0 31067.1 30487.4 30021.6

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 52 Table 3. Product, income, saving and net lending by sector, Cu raçao ( million ANG) 2008 2009 2010 2011 2012 2013 2014 Gross Value Added 4662.1 4718.9 4886.2 5033.0 5181.3 5167.4 5175.3 Non financial corporations 2740.3 2665.5 2754.7 2895.4 3015.4 2918.1 2958.7 Financial corporations 848.9 904.5 897.2 85 9.0 851.3 844.8 837.8 Government incl. social security 539.3 570.7 608.3 626.0 631.1 670.8 642.0 Households & Non profit institutions serving households 533.6 578.2 626.1 652.6 683.4 733.7 736.7 Primary income 5184.8 5181.0 5414.9 556 4.1 5679.6 5697.1 5748.3 Non financial corporations 694.2 402.9 587.6 796.1 657.5 565.9 676.4 Financial corporations 721.3 318.4 446.5 179.9 173.7 230.1 410.6 Government incl. social security 353.6 403.8 270.7 547.6 612.2 663.9 677.1 Ho useholds & Non profit institutions serving households 3415.8 4056.0 4110.2 4040.5 4236.1 4237.2 3984.2 Disposable income 5299.5 5646.7 5565.8 5517.8 5570.7 5565.8 5662.0 Non financial corporations 659.2 357.1 370.5 728.3 551.4 476.8 608.0 Financial corporations 687.4 287.1 279.8 90.3 13.1 113.8 357.8 Government incl. social security 962.3 1420.0 1166.6 1083.1 1142.6 1013.2 938.9 Households & Non profit institutions serving households 2990.6 3582.5 3748.9 3616.2 3863.6 3962.1 3757.2 Gross Saving 1192.1 1295.3 1032.0 1067.2 972.1 1077.9 1419.0 Non financial corporations 659.2 357.1 370.5 728.3 551.4 476.8 608.0 Financial corporations 340.3 305.3 307.1 56.4 90.2 206.8 545.4 Government incl. social secur ity 150.2 575.1 310.6 276.0 319.9 208.3 55.3 Households & Non profit institutions serving households 42.4 57.8 43.7 6.5 10.5 186.0 210.3

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 53 Table 4. Supply and Use summary , Curaçao ( million ANG) 2008 2009 2010 2011 2012 2013 2014 Supply Output 8613.6 8913.9 9266.1 9670.4 10387.8 9905.8 9885.7 Imports of merchandise and services 4933.6 4315.0 4684.6 5238.6 5601.9 5003.0 4824.1 imports of merchandise 3866.8 3109.9 3405.5 3815.7 4035.1 3412.2 3255.5 imports of services 1066.8 1205.1 1279.1 1422.9 1566.8 1590.8 1568.6 Total supply at producers prices 13547.2 13228.9 13950.7 14909.0 15989.7 14908.8 14709.8 Use Intermediate consumption 3951.5 4195.0 4379.8 4637.4 5206.5 4738.4 4710. 4 Final consumption expenditure 4107.4 4351.4 4533.8 4450.6 4598.6 4488.0 4243.0 Households & Non profit institutions serving households 3295.2 3506.5 3677.8 3643.6 3775.9 3683.1 3359.3 Government 812.2 845.0 856.0 807.1 822.6 804.9 883.7 Gross fixed capital formation 1411.1 1390.0 1535.7 1413.0 1526.3 1285.4 1447.8 Non financial corporations 678.7 723.9 812.8 647.8 785.6 442.6 516.0 Financial corporations 499.7 470.6 504.4 537.7 529.8 497.6 562.3 Government 68.5 75.3 93.4 96.4 77 .7 206.5 228.7 Households & Non profit institutions serving households 164.1 120.2 125.1 131.0 133.3 138.7 140.8 Changes in inventories 963.7 592.8 947.1 951.3 839.8 978.4 702.7 Exports of merchandise and services 3523.3 3116.6 2950.9 3863.0 4241.9 3885.5 4084.2 exports of merchandise 1688.5 1208.3 1224.3 1664.9 1697.1 1255.6 1238.6 exports of services 1834.8 1908.3 1726.6 2198.1 2544.8 2629.9 2845.6 Total use at purchasers prices 13957.0 13645.8 14347.3 15315.3 16413.0 15375.7 15188.0 Adjustments Taxes less subsidies on products 535.2 548.7 540.8 554.9 576.0 626.0 622.1 Financial Intermediation Indirectly Measured ( FISIM ) 125.4 131.8 144.1 148.6 152.6 159.1 143.9 Total use at producers prices 13547.2 13 228.9 13950.7 14909.0 15989.7 14908.8 14709.8 Total supply at producers prices 13547.2 13228.9 13950.7 14909.0 15989.7 14908.8 14709.8 Table 5.Gross domestic product by expenditure, Curaçao ( million ANG) 2008 2009 2010 2011 2012 2013 2014 Gro ss domestic product by expenditure 5071.9 5135.8 5282.9 5439.3 5604.7 5634.2 5653.5 Final consumption expenditure 4107.4 4351.4 4533.8 4450.6 4598.6 4488.0 4243.0 Households & Non profit institutions serving households 3295.2 3506.5 3677.8 3643.6 377 5.9 3683.1 3359.3 Government 812.2 845.0 856.0 807.1 822.6 804.9 883.7 Gross fixed capital formation 1411.1 1390.0 1535.7 1413.0 1526.3 1285.4 1447.8 Non financial corporations 678.7 723.9 812.8 647.8 785.6 442.6 516.0 Financial corporation s 499.7 470.6 504.4 537.7 529.8 497.6 562.3 Government 68.5 75.3 93.4 96.4 77.7 206.5 228.7 Households & Non profit institutions serving households 164.1 120.2 125.1 131.0 133.3 138.7 140.8 Changes in inventories 963.7 592.8 947.1 951.3 839.8 97 8.4 702.7 Exports of merchandise and services 3523.3 3116.6 2950.9 3863.0 4241.9 3885.5 4084.2 exports of merchandise 1688.5 1208.3 1224.3 1664.9 1697.1 1255.6 1238.6 exports of services 1834.8 1908.3 1726.6 2198.1 2544.8 2629.9 2845.6 Import s of merchandise and services 4933.6 4315.0 4684.6 5238.6 5601.9 5003.0 4824.1 imports of merchandise 3866.8 3109.9 3405.5 3815.7 4035.1 3412.2 3255.5 imports of services 1066.8 1205.1 1279.1 1422.9 1566.8 1590.8 1568.6

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 54 Table 6. Gross domest ic product (GDP) by sector and industry, Curaçao ( million ANG) 2008 2009 2010 2011 2012 2013 2014 Non financial corporations A+B+C Agriculture, fishing and mining 30.1 21.2 20.6 18.4 11.0 17.7 12.2 D Manufacturing 336.9 389.2 322.7 452 .7 463.6 480.6 475.3 E Electricity, gas and water 147.8 210.9 177.1 92.7 107.4 154.7 246.3 F Construction 284.3 244.8 259.5 259.3 260.7 246.0 193.1 G Trade 556.9 545.4 537.7 533.7 596.3 537.8 516.0 H Hotels and restaurants 201.5 152.7 175.9 202.3 204.5 186.8 192.1 I Transport, storage and communications 449.8 406.5 508.8 529.7 553.9 561.6 604.2 K Real estate, renting and business activities 340.8 326.4 360.2 357.7 360.7 359.8 368.7 M Education private 21.6 22.4 23.3 22.2 23.0 24.1 25.6 N Health and social work 218.2 207.4 236.6 241.8 242.6 240.8 230.5 O Other community, social and personal service activities 152.4 138.5 132.3 185.0 191.7 108.3 94.5 Value added, gross, market prices 2740.3 2665.5 2754.7 2895.4 3015.4 2918.1 2958.7 F inancial corporations J Financial intermediation 848.9 904.5 897.2 859.0 851.3 844.8 837.8 Value added, gross, market prices 848.9 904.5 897.2 859.0 851.3 844.8 837.8 Government A+B Agriculture 1.1 1.1 1.9 1.5 2.1 2. 4 0.0 I Transport, storage and communications 6.7 8.4 7.7 16.4 14.6 13.6 17.6 K Real estate, renting and business activities 3.3 3.1 3.4 0.0 0.0 16.4 0.0 L Public administration and defence;compulsory social security 334.9 353.9 383.1 355.3 372.9 366.9 350.8 M Education 79.5 91.2 92.0 104.1 97.2 98.9 100.0 N Health and social work 60.2 66.7 70.3 86.9 84.0 117.0 118.5 O Other community, social and personal service activities 53.6 46.3 49.9 61.7 60.3 55.7 55.1 Value added, gross, market prices 539.3 570.7 608.3 626.0 631.1 670.8 642.0 Households & Non profit institutions serving households A+B Agriculture and fishing 1.4 1.2 0.8 2.0 0.9 0.6 1.2 D Manufacturing 1.0 1.2 1.8 3.2 2.2 3.0 3.6 F Construction 1.6 24.1 32.4 43.3 32.0 40.7 33.7 G Trade 13.0 8.2 12.9 10.9 7.0 8.7 9.9 H Hotels and restaurants 1.2 8.9 7.4 17.5 9.6 6.5 5.9 I Transport, storage and communications 15.5 15.8 16.1 16.9 16.1 23.2 24.1 K Real estate, renting and business activities 442.1 462.9 492.0 489.2 54 5.8 574.9 576.3 N Health and social work 2.0 0.4 3.3 3.2 3.1 3.5 3.1 O Other community, social and personal service activities 14.5 13.4 16.4 21.4 19.8 23.3 28.8 P Private households 41.3 42.1 42.9 45.1 46.9 49.2 50.1 Value added, gross, market price s 533.6 578.2 626.1 652.6 683.4 733.7 736.7 Total Value Added gross, market prices 4662.1 4718.9 4886.2 5033.0 5181.3 5167.4 5175.3 plus Taxes less subsidies on products 535.2 548.7 540.8 554.9 576.0 626.0 622.1 minus FISIM 125.4 13 1.8 144.1 148.6 152.6 159.1 143.9 Domestic Product gross, market prices 5071.9 5135.8 5282.9 5439.3 5604.7 5634.2 5653.5 Nominal GDP growth 9.2 1.3 2.9 3.0 3.0 0.5 0.3 Inflation 6.9 1.8 2.8 2.3 3.2 1.3 1.5 Real GDP growth 2.2 0.5 0.1 0.6 0.1 0.8 1.1

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 55 Table 7. Gross fixed capital formation by sector and industry, Curaçao ( million ANG) 2008 2009 2010 2011 2012 2 013 2014 Non financial corporations ABC Agriculture, fishing and mining 5.5 8 .7 4.2 9.8 0.5 1.1 6.0 D Manufacturing 46.8 28.0 47.9 50.9 69.0 20.1 25.5 E Electricity, gas and water 43.2 139.6 53.0 46.4 41.3 43.0 83.0 F Construction 34.7 24.7 35.9 48.3 43.9 23.6 36.7 G Trade 89.4 131.4 94.4 128.8 101.5 70.3 102.5 H Hotels and r estaurants 135.1 33.8 46.7 48.0 63.7 39.6 27.2 I Transport, storage and communications 195.1 234.2 438.2 222.4 329.8 187.6 183.9 K Real estate, renting and business activities 34.4 38.1 24.6 30.4 29.6 17.4 10.1 M Education private 3.2 2.9 1.0 1.1 2.0 1 .5 7.1 N Health and social work 39.1 25.3 26.6 24.2 42.8 26.8 21.5 O Other community, social and personal service activities 52.3 57.2 40.3 37.6 62.5 14.5 12.6 Subtotal 678.7 723.9 812.8 647.8 785.6 442.6 516.0 Financial corporations J Financial intermediation 499.7 470.6 504.4 537.7 529.8 497.6 562.3 Subtotal Government incl. Social security I Transport, storage and communications 5.6 1.7 7.9 8.9 7.4 64.3 7.7 K Real estate, renting and business activities 0.4 0.0 0.4 0.4 0.0 0.0 0.0 L Public administration and defence;compulsory social security 24.4 33.6 40.2 46.0 32.9 35.4 52.1 M Education 20.8 18.9 17.3 18.8 17.5 21.5 20.7 N Health and social work 10.8 15.3 19.5 14.7 13.1 78.8 126.6 O Other community, social and personal service activities 6.6 5.8 8.1 7.6 6.7 6.5 21.5 Subtotal 68.5 75.3 93.4 96.4 77.7 206.5 228.7 Households & Non profit institutions serving households AB Agriculture and fishing 0.0 0.0 0.0 0.0 0.0 0.0 0.0 D Manufacturi ng 0.0 0.1 0.0 0.0 0.6 0.0 0.0 F Construction 0.0 0.0 0.0 0.0 0.0 0.0 0.0 G Trade 0.1 1.4 0.0 0.0 0.0 0.0 0.0 H Hotels and restaurants 0.0 0.0 0.1 0.0 0.8 0.7 0.0 I Transport, storage and communications 0.0 0.0 0.0 0.0 0.0 0.0 0.0 K Real estate, renti ng and business activities 162.0 118.6 124.8 130.3 131.7 137.1 140.1 N Health and social work 0.0 0.0 0.0 0.1 0.0 0.0 0.0 O Other community, social and personal service activities 2.0 0.1 0.2 0.6 0.2 0.9 0.7 P Private households 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Subtotal 164.1 120.2 125.1 131.0 133.3 138.7 140.8 Total Gross Fixed capital formation 1411.1 1390.0 1535.7 1413.0 1526.3 1285.4 1447.8

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 56 Table 8 . G overnment final consumption expenditure by co mposition and cost of fun ctions, Cu raçao ( million ANG) 2008 2009 2010 2011 2012 2013 2014 1 Compensation of employees 486.8 519.1 562.7 546.2 550.5 571.0 542.1 a. Wages and salaries 385.3 412.5 441.1 434.6 429.0 446.8 431.6 b. Social contrib utions 101.4 106.6 121.6 111.6 121.4 124.3 110.5 2 Intermediate consumption 310.1 303.6 269.7 267.1 281.7 276.8 303.3 3 Other taxes on production 0.1 0.1 0.1 0.1 0.1 0.0 0.0 4 Consumption of fixed capital 28.8 25.9 17.9 52.9 50. 6 63.9 63.2 5 Sales of goods and services 43.5 36.6 29.3 90.7 100.7 149.6 68.4 6 Output for own final use 0.0 0.0 0.0 0.0 0.0 0.0 0.0 7 Government final consumption expenditure 782.3 812.2 821.1 775.5 782.3 762.1 840.1 General public services 147.8 151.2 167.6 159.9 188.3 137.4 156.6 Defence affairs and services 19.4 24.0 24.6 19.8 20.8 24.6 21.5 Public order and safety affairs 158.3 158.4 181.6 180.0 166.9 179.9 182.4 Transportati on and communication affairs and services 3.5 12.1 13.9 22.3 4.1 7.2 40.4 Trade, agriculture, forestry and fishing affairs 18.1 20.6 20.6 2.1 0.2 9.5 2.7 Education 94.2 97.8 96.9 109.8 102.3 102.1 102.7 Cultural and religious affair s and services 1.8 1.8 1.9 19.8 13.7 8.6 9.4 Social security and welfare affairs and services 65.0 60.5 61.5 39.6 39.5 39.3 44.4 Health affairs and services 31.4 32.0 37.4 59.6 54.7 12.3 53.0 Other 249.7 253.9 215.2 162.4 191.8 241.1 227.1 Government final consumption expenditure 782.3 812.2 821.1 775.5 782.3 762.1 840.1

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 57 Table 9 . Compensation of employees of the government sector by function, Curaçao ( million AN G) 2008 2009 2010 2011 2012 2013 2014 Function General public services 97.8 105.5 121.6 110.3 134.1 95.9 86.8 Defense affairs and services 13.4 14.6 16.1 14.5 14.4 17.4 16.1 Public order and safety affairs 121.1 127.3 147.1 133.7 129.7 147.5 144.3 Tr ansportation and communication affairs and services 6.7 8.4 7.7 14.0 12.1 12.3 14.5 Trade, agriculture, forestry and fishing affairs 12.0 12.6 13.2 8.4 8.9 8.0 7.1 Education 79.2 90.8 91.4 94.5 87.8 89.1 85.3 Cultural and religious affairs and services 1.4 0.0 0.1 13.4 8.5 4.2 4.1 Social security and welfare affairs and services 30.4 26.6 24.1 22.3 21.1 21.9 21.4 Health affairs and services 58.2 65.2 68.5 72.6 69.7 106.4 99.8 Other services 66.6 68.1 73.0 62.6 64.2 68.3 62.5 Total compensation of emp loyees of the government 486.8 519.1 562.7 546.2 550.5 571.0 542.1 T able 10 . Taxes on production and imports, Curaçao ( million ANG) 2008 2009 2010 2011 2012 2013 2014 Total taxes on production and imports Import duties 178.0 172.0 175. 7 182.6 167.4 162.4 160.4 Excise on gasoline 67.8 71.5 63.7 67.0 40.9 56.0 49.1 Excise on beer 14.5 13.7 14.8 11.3 12.8 10.8 11.0 Excise on liquor 13.4 13.1 13.4 12.7 11.4 13.0 12.7 Excise on tobacco 12.0 12.3 14.2 10.2 14.2 14.5 11.8 Export taxes 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Sales tax 285.4 301.3 300.6 311.9 367.2 390.2 391.9 Stamp taxes 5.6 5.5 5.5 5.3 5.1 4.8 5.9 Property transfer tax 27.0 21.8 19.8 18.3 16.9 14.5 16.1 Hotel room tax 4.8 6.2 8.0 9.0 11.6 10.1 12.0 Other taxes on products 5.2 4.6 9.6 6.2 6.0 2.2 3.5 Other taxes on production 39.8 49.1 43.9 42.4 41.3 43.6 51.2 Total taxes on production and imports 653.6 671.1 669.2 676.9 694.9 722.3 725.5 T able 1 1 . Current taxes on income and wealth, Curaçao ( million ANG) 2008 2009 2010 20 11 2012 2013 2014 Taxes on income 675.3 712.9 938.1 701.3 712.9 674.1 649.2 wage tax 463.9 487.6 500.0 504.4 499.8 495.3 486.5 income tax 6.1 2.7 0.9 1.6 10.2 5.1 1.7 profit tax 205.3 222.6 437.2 198.5 202.9 173.6 161.0 of which: int ernational Financial sector 154.4 149.7 76.9 86.8 38.0 33.8 53.0 Other current taxes 28.1 29.6 29.1 31.4 27.7 29.3 29.5 Total current taxes on income and wealth 703.5 742.6 967.2 732.8 740.6 703.4 678.6

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 72 List of abbreviations AKO Arbeidskrachtenonderzoek (labor force survey) ANG. Netherlands Antilles Guilders BVZ Bureau CBS Central Bureau of Statistics CPC Central Product of Classification CCIS Cross Classification of Industry and Sectors DI Domestic Income FC Financial Corporations GDP Gross Domestic Product GFCF Gross Fixed Capital Formation GNDI Gross Nation al Disposable Income GNI Gross National Income GOV Government Horeca Hotel, restaurant en café HH Households IMF International Monetary F u nds ISIC International Standard of Industrial Classification Mln. Million mp Market prices ND P Net Domestic Product NFC Non Financial Corporation NNI Net National Income NPI Non Profit Institutions NPISH Non Profit Institutions Serving Households ROW Rest of the World SNA System of National Accounts SOCSEC Social Security UN United Nations

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 73 Annex

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 74 A nnex I. Overview of selected concepts and definitions 5 Actual final consumption Government actual final consumption is equal to the value of the expenditures on collective services. (art. 9. 91) Household actual final consumption consists of the consumption of goods or services acquired by individual households by expenditures or through social transfers in kind, received from government units or non profit institutions serving households NPIS H s (art.9.72). Adjustment for the change in net equity of households in pension funds The reserves of private funded pension schemes are treated in the System as being collectively owned by the households with claims on the funds. The payments of pension contributions into the funds and the receipts of pensions by pensioners are, therefore, not transfers between different institutional units. They constitute the acquisition and disposal of financial assets. However, this may not accord with the perception of the households concerned, especially pensioners' households, who tend to regard the pensions they receive as income in the form of current transfers. In order to present income information that may be more useful for analyzing the behavior of the hous eholds concerned, the payments of pension contributions and the receipts of pensions are therefore recorded as part of the disposable incomes of households (art. 9.14, 9.15). Balancing item A balancing item is equal to the total value of the entries on one side of an account minus the total value for the other side. Balancing items are not simply devices introduced to ensure that accounts balance. They contain a great deal of information and include some of the most important macro economic aggregates in the accounts namely, value added/domestic product, operating surplus, disposable income , saving , net lending/net borrowing and current external balance (art.3.64, 3.65). Consumption Consumption is an activity in which institutional units use up goods o r services. There are two quite different kinds of consumption. Intermediate consumption consists of inputs into processes of production that are used up within the accounting period of time . Final consumption consists of goods and services used by individ ual households or the community to satisfy their individual or collective needs or wants (art.1.49). Exports of goods and services Exports of goods and services consist of sales, barter, or gifts or grants, of goods and services from resident to non resid ents (art 14.88) 5 System of National Accounts 1993, Brussels/Luxembourg, NY, Paris, Washington,DC. 1993. Variables are in alphab etical order and the corresponding article numbers from the SNA manual are between brackets.

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 75 Financial corporations sector This sector consists of all resident corporations and quasi corporations whose principal activity is financial intermediation or facilitating financial intermediation. In addition, it includes NPIs engaged i n market production of a financial nature (e.g., insurance), including those financed by subscriptions from financial enterprises whose role is to promote and serve the interests of those enterprises (art 4.8). Financial Intermediation services indirectly measured ( FISIM ) Some financial intermediaries are able to provide services for which they do not charge explicitly by paying or charging different rates of interest to borrowers and lenders (and to different categories of borrowers and lenders). They pay lower rates of interest than would otherwise be the case to those who lend them money and charge higher rates of interest to those who borrow from them. The resulting net receipts of interest are used to defray their expenses and provide an operating surp lus. This scheme of interest rates avoids the need to charge their customers individually for services provided and leads to the pattern of interest rates observed in practice. However, in this situation, the System must use an indirect measure, financial intermediation services indirectly measured ( FISIM ), of the value of the services for which the intermediaries do not charge explicitly. The total value of FISIM is measured in the System as the total property income receivable by financial intermediaries minus their total interest payable, excluding the value of any property income receivable from the investment of their own funds; as such, income does not arise from financial intermediation. Whenever the production of output is recorded in the System, th e use of that output must be explicitly accounted for elsewhere in the System. Hence, FISIM must be recorded as being disposed of in one or more of the following ways -as intermediate consumption by enterprises, as final consumption by households, or as exports to non residents. In principle, the total output should, therefore be allocated among the various recipients or users of the services for which no explicit charges are made. In practice, however, it may be difficult to find a method of allocating the total output among different users in a way which is conceptually satisfactory from an economic viewpoint and for which the requisite data are available. Some flexibility has therefore to be accepted in the way in which the output is allocated. (6.124 , 6.125, 6.126) Many countries including Curaçao prefer to continue to use the convention proposed in the 1968 version of the SNA whereby the whole of the output is recorded as the intermediate consumption of a nominal industry. This convention makes total GDP for the economy as a whole invariant to the size of the estimated output. General government sector This sector consists mainly of central, state and local government units together with social security funds imposed and controlled by those units. I n addition, it includes NPIs engaged in non market production that are controlled and mainly financed by government units or social security funds (art.4.9). Gross Domestic Product (GDP)

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 76 The sum of gross value added of all resident producer units (insti tutional sectors or, alternatively, industries) plus that part (possibly the total) of taxes, less subsidies on products, which is not included in the valuation of output (production approach) or, The sum of the final uses of goods and services (all uses e xcept intermediate consumption) measured in purchasers' prices, less the value of imports of goods and services (expenditure approach) or, The sum of primary incomes distributed by resident producer units (income approach); (art.7.17). Gross fixed capital formation This is the value of acquisitions less disposals of fixed assets. Fixed assets are produced assets (mostly machinery, equipment, buildings or other structures but also including some intangible assets) that are used repeatedly or continuously in production over several accounting period of time s (more than one year); (art.1.49). Gross National Income (GNI) Gross National Income (GNI) is equal to GDP less primary incomes payable to non resident units plus primary incomes receivable from non resid ent units. In other words, GNI is equal to GDP less taxes (less subsidies) on production and imports, compensation of employees and property income payable to the rest of the world plus the corresponding items receivable from the rest of the world. Thus, G NI at market prices is the sum of gross primary incomes receivable by resident institutional units/sectors (art. 7.16). Households sector This sector consists of all resident households. These include institutional households made up of persons staying i n hospitals, retirement homes, convents, prisons, etc. for long period of time s . As already noted, an unincorporated enterprise owned by a household is treated as an integral part of the latter and not as a separate institutional unit, except when the ente rprise qualifies as a quasi corporation (art 4.11). Imports of goods and services Imports consist of purchases, barter, or receipts of gifts or grants, of goods and services by resident from non residents (art.14.88). Non profit institutions serving hous eholds sector This sector consists of all resident NPIs, except those controlled and mainly financed by government that provide non market goods or services to households (art 4.10). Output Output consists only of those goods or services that are produce d within an establishment that become available for use outside that establishment. When an enterprise contains more than one establishment, the output of the enterprise is the sum of the outputs of its component establishments (art. 6.38).

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 77 Quasi corporat ions Quasi corporations are unincorporated enterprises that function as if they were corporations. If they function like corporations, they must keep complete sets of accounts A quasi corporation may be: either an unincorporated enterprise owned by a resi dent institutional unit that is operated as if it were a separate corporation and whose de facto relationship to its owner is that of a corporation to its shareholders: such an enterprise must, of course, keep a complete set of accounts; or an unincorporat ed enterprise owned by a non resident institutional unit that is deemed to be a resident institutional unit because it engages in a significant amount of production in the economic territory over a long or indefinite period of time of time ( art. 4.49 t/m 4/52). Residency An institutional unit is resident in a country when it has a center of economic interest in the economic territory of that country. It is said to have a center of economic interest when there exists some location -dwelling, place of produ ction or other premises -within the economic territory on, or from, which it engages, and intends to continue to engage, in economic activities and transactions on a significant scale either indefinitely or over a finite but long period of time . In most ca ses, a long period of time may be interpreted as one year or more, although this is suggested only as a guideline and not as an inflexible rule (art.4.15). Thus, residence is not based on nationality or legal criteria (although it may be similar to the con cepts of residence used for exchange control, tax or other purposes in many countries). Some aspects of residence: (a) The residence of individual persons is determined by that of the household of which they form part and not by their place of work. All members of the same household have the same residence as the household itself, even though they may cross borders to work or otherwise spend period of time of time abroad. If they work and reside abroad so long that they acquire a center of economic inter est abroad, they cease to be members of their original households; (b) Unincorporated enterprises that are not quasi corporations are not separate institutional units from their owners and, therefore, have the same residence as their owners; (c) Corpor ations and NPIs may normally be expected to have a center of economic interest in the country in which they are legally constituted and registered. Corporations may be resident in countries different from their shareholders and subsidiary corporations may be resident in different countries from their parent corporations. When a corporation, or unincorporated enterprise, maintains a branch, office or production site in another country in order to engage in a significant amount of production over a long perio d of time of time but without creating a subsidiary corporation for the purpose, the branch, office or site is considered to be a quasi corporation (i.e., separate institutional unit) resident in the country in which it is located (see paragraphs 14.22 to 14.28 of chapter XIV);

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 78 d) Owners of land and buildings in the economic territory of a country are deemed always to have a center of economic interest in that country, even if they do not engage in other economic activities or transactions in the country. All land and buildings are therefore owned by residents (see paragraph 14.14 of chapter XIV).(art. 4.16) Transfers A transfer is defined as a transaction in which one institutional unit provides a good, service or asset to another unit without receiving from the latter any good, service or asset in return as counterpart. Transfers may be either current in kind or in cash or capital in kind and in cash. In the case of a capital transfer, the ownership of an asset (other than inventories) is transferred, or an asset (other than inventories) is purchased or disposed of by one or both parties to the transaction. An example of a capital transfer is an investment grant (in cash). In practice, capital transfers tend to be large, infrequent and irregular. Curren t transfers consist of all transfers that are not transfers of capital. They directly affect the level of disposable income and should influence the consumption of goods or services. Current transfers tend to be comparatively small and are made frequently and/or regularly. Both parties should classify a transfer in the same way (art. 8.27).

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 79 Annex II. Classification of selected transactions and other flows 6 1. Transactions in goods and services (products) (P) P.1 Output P.11 Market output P.12 Output for own final use P.13 Other non market output P.2 Intermediate consumption P.3 Final consumption expenditure P.31 Individual consumption expenditure P.32 Collective consumption expenditure P.4 Actual final con sumption P.41 Actual individual consumption P.42 Actual collective consumption P.5 Gross capital formation P.51 Gross fixed capital formation P.52 Changes in inventories P.6 Exports of goods and services P.61 Exports of goods P.62 Exports of services P.7 Imports of goods and services P.71 Imports of goods P.72 Imports of services 2. Distributive transactions (D) D.1 Compensation of employees D.11 Wages and salaries D.12 Employers' social contributions D.2 Taxes on produ ction and imports D.21 Taxes on products D.212 Taxes and duties on imports excluding VAT D.2121 Import duties D.2122 Taxes on imports excluding VAT and duties D.213 Export taxes D.214 Taxes on products, except VAT, import and expo rt taxes D.29 Other taxes on production 6 System of National Accounts 1993, Brussels/Luxembourg, NY, Paris, Washington, DC. 1993. Selected transactions are those used in the Curaçao.

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National Accounts of Curaçao 2014 Central Bureau of Statistics, September 201 8 80 D.3 Subsidies D.31 Subsidies on products D.39 Other subsidies on production D.4 Property income D.41 Interest D.42 Distributed income of corporations D.421 Dividends D.43 Reinvested earnings on direct foreign investment D.44 Property income attributed to insurance policy holders D.45 Rent D.5 Current taxes on income, wealth, etc. D.51 Taxes on income D.59 Other current taxes D.6 Social contributions and benefits D.61 Social contri butions D.611 Actual social contributions D.62 Social benefits other than social transfers in kind D.621 Social security benefits in cash D.7 Other current transfers D.71 Net non life insurance premiums D.72 Non life insurance claims D.74 Current international cooperation D.75 Miscellaneous current transfers D.8 Adjustment for the change in net equity of households in pension funds D.9 Capital transfers D.91 Capital taxes D.92 Investment grants D.99 Other capital transfers 3. Other accumulation entries (K) K.1 Consumption of fixed capital K.2 Acquisitions less disposals of non produced non financial assets K.21 Acquisitions less disposals of land and other tangible non produced assets K.211 Acquisitions of lan d and other tangible non produced assets K.212 Disposals of land and other tangible non produced assets