The Central Bank of Aruba (CBA) recently concluded its Business Perception Survey (BPS) for the first quarter of 2021. The BPS assesses the economic perceptions and sentiments of local businesses, as well as the continued impact of the COVID-19 pandemic on economic conditions and business activities.
The Business Perception Index (BPI), comprising the current and short-term economic conditions, grew by 1.4 index points to 97.3 during the first quarter of 2021. The overall BPI remains below 100, despite a further improvement in business sentiments, compared to last quarter (See Chart 1)[1]. The boost in business sentiments resulted from a battlement in both current and short-term future economic conditions.
The current economic condition index noted an expansion of 0.3 index point to 93.7, up from 93.4 in the fourth quarter of 2020. The short-term future economic condition index strengthened by 1.6 index points, i.e., from 101.1 in the fourth quarter of 2020 to 102.7 in the first quarter of 2021. The percentage of respondents expecting positive economic growth in the next 12 months grew substantially, i.e., by 10.8 percentage points to 26.5 percent.
In terms of the impact of the COVID-19 pandemic, the expanded Business Perception Survey also assessed the expected impact on business sales, the need for applying for emergency business funds, and the anticipated economic recovery period.
More than 40 percent of the respondents (44.7 percent) pointed out that the COVID-19 pandemic continued to have a significant impact on their business sales, i.e., 0.7 percentage point more compared to the fourth quarter.
The complete report of the Business Perception Survey is available on the website of the CBA (https://www.cbaruba.org/).
