PHILIPSBURG--The St. Maarten economy continued to lose steam in 2009 from the earlier moderation in activity late 2008, says the Department of Economic Affairs and Policy Research (DEPR).

However, the department said much like the region and the developed world, slight improvements could be seen in the final quarter of 2009 as declines within the economic indicators were less severe than in the first three quarters. This was so even with government earnings, on a cash basis, contracting by 6.8 per cent in 2009 relative to 2008.

AVBZ premiums

Despite the increase in AVBZ premiums, overall revenues declined by approximately four per cent in 2009, compared to 2008. This reflected a contraction on the labour market.

Utilities

Total electricity sales volumes increased by four per cent in 2009, relative to 2008. Individual customer groups showed a minimal growth of one per cent in the domestic sector, while double-digit increases (25 per cent) were sustained in the large consumer sector, resulting mainly from the addition of the Maho Group on the GEBE grid. Overall, water consumption remained flat in 2009. The commercial sector noted a decline of 16 per cent, while large consumer sales volumes increased by seven per cent during the review period.

Banking

Based on figures from the Central Bank of the Netherlands Antilles, resident loans (seven per cent) and deposits (seven per cent) continued to record slowed growth up to November 2009, due mainly to the slowdown in economic activity within main sectors on the local market. Although the banking industry continued to see positive growth in 2009, the impact of the global recession on the local economy and in turn their customer base, could be seen in areas such as lower loan demand and increased loan delinquencies and defaults. Home mortgage demand had reportedly held stable throughout the economic downturn, with figures showing an increase of approximately 24 per cent in mortgage loans up to November 2009, relative to 2008.

Cargo

Container movements in TEUs (twenty-foot equivalent unit: a measure used for capacity in container transportation) at St. Maarten Port Authority declined by 13 per cent in 2009, relative to 2008. It should be noted, however, that although negative growth was experienced in the third (minus five per cent) and fourth (minus two per cent) quarters of the year, it signified an improvement from the relatively high double-digit declines registered in the first half of the year.

Gasoline

Overall, gasoline sales volumes increased moderately by 1.5 per cent in 2009, compared to 2008. According to DEPR, the consistent drop in gasoil volumes throughout 2009 could be accounted for by a drop in marine sales due to challenges in the industry with bridge fees and the slowdown in the construction sector. The double-digit increase in fuel resulted from higher consumption from GEBE and from the Maho group indirectly.