View source for Economy of Aruba

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{{Infobox economy
|country         = Aruba 
|image           = ARUBA-oranjestad-hafen-1.jpg
|image_size      = 300px
|caption         = Centre of [[Oranjestad, Aruba|Oranjestad]] in 2011.
|currency        = [[Aruban florin]] (AWG)  <br/> 1 US$ = 1.80 AWG (Jan. 2025)
|year            = Calendar year
| group = {{plainlist|
*[[Developed country|Developed/Advanced]]<ref>{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=110&sg=All+countries+%2f+Advanced+economies |title=World Economic Outlook Database, April 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=29 September 2019}}</ref>
*[[World Bank high-income economy|High-income economy]]<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=datahelpdesk.worldbank.org |access-date=29 September 2019}}</ref>}}
|gdp             = {{plainlist|
*{{increase}} $4.45 billion (nominal, 2025 est.)<ref name="IMFWEOAW">{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/02/weodata/weorept.aspx?pr.x=45&pr.y=16&sy=2016&ey=2021&scsm=1&ssd=1&sort=country&ds=.&br=1&c=314&s=NGDP_RPCH%2CNGDPD%2CPPPGDP%2CNGDPDPC%2CPPPPC%2CPCPIPCH&grp=0&a= |title=World Economic Outlook Database, October 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=21 October 2019}}</ref>
*{{increase}} $5.9 billion ([[Purchasing power parity|PPP]], 2025 est.)<ref name="IMFWEOAW"/>}}
|growth          = {{plainlist|
*0.5% (2016) 2.3% (2017)
*1.2% (2018e) 0.7% (2019e)}}
|per capita      = {{plainlist|
*{{increase}} $41,498 (nominal, 2025 est.)<ref name="IMFWEOAW"/>
*{{increase}} $55,056 ([[Purchasing power parity|PPP]], 2025 est.)<ref name="IMFWEOAW"/>}}
|sectors         = [[agriculture]]: 0.4%, [[Industrial sector|industry]]: 33.3%, services: 66.3% (2002 est.)
|inflation       = 3.579% (2018)<ref name="IMFWEOAW"/>
|poverty         = N/A%
|labor           = 51,610 (2007 est.)
|occupations     = agriculture: NA%, industry: NA%, services: NA%
|unemployment    = 6.9% (2005 est.)
|industries      = [[tourism]], petroleum transshipment facilities, and [[banking]]
|exports         = $312.7 million (2014 est.) <ref name=cia>{{cite web |url=https://www.cia.gov/the-world-factbook/countries/aruba/ |title=CIA – The World Factbook |publisher=Cia.gov |access-date=2015-06-26 |archive-date=2021-01-09 |archive-url=https://web.archive.org/web/20210109084020/https://www.cia.gov/the-world-factbook/countries/aruba |url-status=live }}</ref>
|export-goods    = live animals and [[animal products]], [[art]] and [[collectibles]], [[machinery]] and [[electrical equipment]], and transport equipment
|export-partners = {{flag|United States}} 41.9% <br/> {{flag|Colombia}} 17.9% <br/> {{flag|Venezuela}} 13.5% <br/> {{flag|Panama}} 10.8% <br/> {{flag|Netherlands}} 8.1%  (2015 est.) <ref>{{cite web|url=https://www.cia.gov/the-world-factbook/countries/aruba/|title=Export Partners of Aruba|publisher=[[CIA World Factbook]]|year=2013|access-date=2015-06-28|archive-date=2021-01-09|archive-url=https://web.archive.org/web/20210109084020/https://www.cia.gov/the-world-factbook/countries/aruba|url-status=live}}</ref>
|imports         = $1.528 billion (2014 est.)
|import-goods    = [[machinery]] and [[electrical equipment]], refined oil for bunkering and re-export, [[chemicals]]; and [[foodstuff]]s
|import-partners = {{flag|United States}} 53.2% <br/> {{flag|Venezuela}} 14.9% <br/> {{flag|Mexico}} 10.5% <br/> {{flag|Netherlands}} 7.7% <br/> {{flag|Canada}} 6.2% (2015 est.) <br/> 
<ref>{{cite web|url=https://www.cia.gov/the-world-factbook/countries/aruba/|title=Import Partners of Aruba|publisher=[[CIA World Factbook]]|year=2013|access-date=2015-06-28|archive-date=2021-01-09|archive-url=https://web.archive.org/web/20210109084020/https://www.cia.gov/the-world-factbook/countries/aruba|url-status=live}}</ref>
|debt            =  $533.4 million (2005 est.)
}}

The '''economy of Aruba''' is classified as a [[World Bank high-income economy|high income economy]] by the [[World Bank]],<ref>{{Cite web |title=Aruba - The World Bank |url=https://data360.worldbank.org/en/economy/ABW}}</ref> with [[tourism]] currently providing the largest percentage of the country's income. Because of tourism's rapid growth on the island in the last 80 years,<ref>{{Cite web |title=Aruba Tourism - History of Tourism & Aruba Tourism Authority |url=https://www.aruba.com/us/our-island/history-and-culture/aruba-tourism |access-date=2025-06-11 |website=www.aruba.com |language=en-us}}</ref> related industries like [[construction]] have also flourished in [[Aruba]]. Other primary industries include [[oil refining]] and storage, as well as [[offshore bank]]ing. [[Aloe]] cultivation, [[livestock]], and [[fishing]] also contribute to Aruba's [[economy]]. In addition, the country also exports [[art]] and [[Collectable|collectibles]], [[Machine industry|machinery]], [[electrical equipment]], and [[transport]] equipment. Aruba's small [[Workforce|labor force]] and low [[unemployment]] rate have led to many unfilled job vacancies, despite sharp rises in wage rates in recent years.

Aruba boasts one of the highest [[Standard of living|standards of living]] and highest [[List of countries by GDP (nominal) per capita|GDP per capitas]] in the [[Caribbean]],<ref>{{Citation |title=Aruba |date=2025-06-04 |work=The World Factbook |url=https://www.cia.gov/the-world-factbook/countries/aruba/ |access-date=2025-06-11 |publisher=Central Intelligence Agency |language=en}}</ref> with a low unemployment rate and a strong economy.<ref>{{Cite news |last=Aruba |first=Government of |date=2024-05-14 |title=Results of the Labor Force Survey of 2023 |url=https://www.gobierno.aw/en/results-of-the-labor-force-survey-of-2023 |access-date=2025-06-11 |work=Government of Aruba |language=en}}</ref> Having well-developed [[infrastructure]] and high economic output.<ref>{{Cite web |date= |title=Centrale Bank van Aruba - State of the Economy (2024) |url=https://www.cbaruba.org/readBlob.do?id=17568}}</ref> With such a large part of its economy dependent on tourism, the island has been seeking ways to diversify its economy to reduce its reliance on the industry and prevent economic shutdowns like that seen in 2020.<ref>{{Cite web |title=Investment {{!}} The Department of Economic Affairs, Commerce and Industry of Aruba |url=https://www.deaci.aw/doing-business/investment/ |access-date=2025-06-11 |language=en-US}}</ref> Their current focus is on expanding into the [[cannabis]] and [[hemp]] industry, transitioning to a [https://www.government.aw/news/news_47033/item/minister-lampe-presented-the-circular-economy-vision-2050-vec_43055.html circular economy], creating an internal economy in the [[primary sector]], [[technology]], and [[finance]].

== History ==
Unlike many [[Caribbean]] islands, a [[plantation economy]] never developed on Aruba due to its arid climate. Early [[Spain|Spanish]] explorers considered the island of little value, partly because the poor soil made growing crops difficult and partly because their attempts to find gold turned up empty-handed. However, long after the [[Netherlands|Dutch]] obtained control of Aruba, they found the gold the Spanish had been seeking.

=== Gold ===
With the discovery of gold on Aruba in 1800, mining became the island's foremost industry. Aruba's economy boomed. However, by 1916 the gold supply had mostly been tapped out, making it impossible for companies to turn a profit. As the gold mining industry waned, so did the economy.

=== Aloe ===
First planted on Aruba in 1850, aloes thrive in its [[desert]] conditions. With a healthy demand for aloe products, it became an important part of Aruba's economy. In fact, for many years, the country was aloe's top exporter. But over the years, many aloe fields were replaced by buildings, diminishing its production and exports declined.

The oldest company on the island, Aruba Aloe, has recently instituted changes in the hopes of becoming Aruba's leading product manufacturer. It built a new, modern facility, an aloe museum, and designed new packaging. Although most of their product line sells in the national market, a 2005 exporting deal with a U.S. company and sales through their website have increased their international market.

=== Oil ===
Despite setbacks caused by the troubled gold and aloe industries, Aruba's economy didn't suffer long. Because of its location near [[Venezuela]], the island became an attractive spot for oil refineries. The [[Lago Oil and Transport Company]], owned by [[Standard Oil of New Jersey]] (now [[Exxon]]), opened in 1929 near the transshipping port of [[San Nicolaas]]. Following in their footsteps, the [[Arend Petroleum Company|Eagle Oil]] refinery opened soon after in [[Oranjestad, Aruba|Oranjestad]]. By early 1939, a more consistent supply of crude oil was achieved, allowing the refineries to operate at full capacity. Over the next few decades, the oil industry took over as Aruba's primary economic force.

With the United States entry into World War II in 1942 the demand for aviation gasoline further increased and considerable expansion was done at the Lago refinery soon after the United States entered the war. With this expansion, Lago became one of the largest refineries in the world, only bested by [[Royal Dutch Shell]] [[:es:Refineria Isla|Isla refinery]] on [[Curaçao]], and a major producer of petroleum products for the Allied war efforts. The importance of the Lago refinery was well known to the German High Command and on [[Attack on Aruba|February 16, 1942]] the Lago refinery was attacked by the {{GS|U-156|1941|6}}. Due to mistakes by the German deck gunner the refinery was not damaged but three of the Lago tankers were torpedoed in [[San Nicolaas]] harbour.

The Eagle Oil refinery shut down and was dismantled in the late 1950s. But the Lago refinery kept going until 1985, when the demand for oil fell and Exxon closed it. In 1991, the [[Coastal Corporation]] bought it, scaled down operations, and reopened it. Coastal later sold the refinery to [[Valero Energy]] Corporation in 2004. Its reopening didn't raise Aruba's oil industry to its previous heights although it did revive that sector and continued to be a key contributor to the country's economy until 2009 when it was closed. In December 2010, Valero Energy announced plans to reopen the refinery.

=== Tourism ===
[[Image:Mecury in Aruba.JPG|thumb|right|200px|The cruise ship ''[[Mein Schiff Herz|Celebrity Mercury]]'' docked in Oranjestad.]]
In 1947, Aruba's government founded a tourist board to explore the possibility of developing a tourism industry. Several years later, [[cruise ship]]s began to dock in [[Oranjestad, Aruba|Oranjestad]], Aruba's capital city. The island's first luxury hotel was built in 1959, giving the fledgling industry a good start. Over the years, tourism grew and helped create a prosperous economy.

As the oil industry waned, tourism increased in importance. The government offered fiscal incentives to spur growth of hotels and other tourist-oriented businesses. Their efforts resulted in a steady and rapid rise in tourism. When a surplus of these jobs couldn't be filled, they placed a one-year moratorium on new hotel construction and new tourist corporations.

Following the [[September 11 attacks]], tourism temporarily declined because of grounded flights and travel fears. Aruba stepped up its visible security force in tourist areas to heighten safety and reassure visitors. After a short time, tourism rebounded strongly.

Another potential threat to the industry occurred in 2005, when the May 30 [[Disappearance of Natalee Holloway|disappearance of vacationing Alabama teen Natalee Holloway]] made international news. Claiming that Aruban authorities weren't taking the case seriously enough, her mother and the Governor of Alabama called for a nationwide boycott of Aruba. However, the U.S. federal government didn't back the proposed boycott. Aruba's reputation as one of the safest islands in the Caribbean may have helped it overcome any negative stigma caused by the case. The amount of tourism in June 2005 actually rose by 9% from the previous year.

== References ==
{{Reflist}}
*[http://www.aruba.com/index.php Aruba.com - Official Government Website]
*[https://www.cia.gov/the-world-factbook/countries/aruba/ CIA World Factbook - Aruba]

== See also ==
{{div col|colwidth=35em}}
* [[Economy of the Caribbean]]
* [[Aruban florin]]
* [[Central Bank of Aruba]]
* [[Central banks and currencies of the Caribbean]]
* [[Euronext]]
* [[List of countries by credit rating]]
* [[List of Latin American and Caribbean countries by GDP growth]]
* [[List of Latin American and Caribbean countries by GDP (nominal)]]
* [[List of Latin American and Caribbean countries by GDP (PPP)]]
* [[List of countries by tax revenue as percentage of GDP]]
* [[List of countries by future gross government debt]]
* [[List of countries by leading trade partners]]
{{div col end}}

{{Aruba topics}}
{{Caribbean in topic|Economy of}}
{{EU Dependent economies|state=collapsed}}
{{Americas topic|Economy of}}

[[Category:Economy of Aruba| ]]