Aruba is a small open economy with a pegged exchange rate to the U.S. dollar. The island is heavily dependent on tourism and has living standards among the highest in the Caribbean. The economy is gradually recovering from several recessions since 2008. The authorities have managed well the impact of the crisis in Venezuela through diversification of product markets and tourism sources. Nonetheless, a deepening of the crisis is a downside risk—mainly through a potentially sizable influx of immigrants and refugees. And so is a potential deterioration in the outlook for the U.S. economy.
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