Aruban economy: Periodic waves of prosperity.

First it was gold, then oil, and now tourism. Aruba has a interesting economic history with waves of prosperity sweeping the Island at different times on the back of a different industry.

Till the beginning of the twentieth century, the Island’s economy was transformed with the discovery and exploitation of gold reserves. For nearly a century, the Island maintained its golden hue, until it was replaced with an equally valuable resource, though black in color.

The discovery of oil soon led to another boom, and Aruba rode piggyback on the slippery stuff to achieve great heights economically. At one time Aruba boasted of the world’s largest oil refinery and storage facility. And now, tourism is witnessing a similar boom, so much so, that the Government has imposed certain restrictions on its further expansion!

Aruba is an independent entity under the Kingdom of the Netherlands, and is a popular tourist destination. The development of tourism has given a boost to related industries like construction, hotels, transport, telecommunications, etc. All this has created tremendous opportunities for Arubans to improve their lifestyle and lead a more prosperous life.

Apart from tourism, Aruba exports live animals and animal products, machinery and equipment, and imports crude oil, chemicals, foodstuffs, etc. The United States and the Netherlands are Aruba’s major trading partners. There is very little unemployment on the Island.

The Government has initiated steps to diversify the economy in order to reduce its dependence on tourism. Another area of concern is the budget and trade deficits. A potential area of internal disturbance and conflict in regard to total independence from the Netherlands seems to have subsided, at least for the present.