Document Actions
Economic Development
Statistical Yearbook 2009
The Statistical Yearbook 2009 provides in handy format the key figures on Dutch society. per theme, the figures are preceded by a short Description of the developments in the respective terrain. source: Government of Suriname
General Trends
According to ECLAC's flagship report 'Economic Survey of Latin America and the Caribbean 2009-2010', strong performances in the oil and gold sectors and continued infrastructure development contributed to real GDP growth of 2.2% in 2009. While this growth was slower than the 2008 rate of 4.3%, it still meant that Suriname was one of the few Caribbean countries to post positive growth during the year.
source: ECLAC
Economic Performance
Preliminary Overview of the Caribbean economies 2008-2009 states that Suriname’s economy continued to grow in 2008, bolstered especially in the first half of the year by a booming commodities market. Real GDP growth rate is estimated to reach 5% for the year. Credit continued its expansionary route, with deposit rates remaining stable and lending rates falling even in the face of the global financial crisis and high inflation rates (18.1% in September 2008). It is expected that the current account surplus will decrease as a percentage of GDP, though it remains bolstered by mineral output. The fiscal position continues to be solid, augmented by increased revenue from minerals as well as increased indirect taxes. Uncertainty about commodity prices and inflation will remain the major challenges for economic policy in 2009 and though fiscal revenue as well as inflation are expected to moderate, GDP is expected to grow at 4.2% for the period.
source: ECLAC
Economic Survey of the Caribbean 2007-2008
The survey provides an overview of the economic performance of countries of the Caribbean Development and Cooperation Committee (CDCC) for the year 2007 and their outlook for 2008. The last chapter presents country briefs with the main macroeconomic developments in 2007 and the outlook for 2008.
In 2007 the Suriname economy grew by 5.3%, led again by increasing mineral production, with the mining and quarrying sector expanding by 10.6% coupled with increasing international commodity prices. An overall fiscal surplus of approximately 2.5% of GDP was recorded, making it two consecutive years of surpluses. The Central Bank lowered its cash reserve requirement from 27% to 25% as well as its deposit rates in response to perceived macroeconomic stability; as a result, M1 increased by 22%. Expanding credit coupled with externally driven increases in the prices of food and fuel increased the year end 2007 inflation rate to 8.3% (4.7% in 2006).
The current account exhibited yet another year of surplus, with the trade surplus expanding 16.15% in 2007. The government continues to focus on prudent fiscal policies in order to maintain a stable exchange rate and controlling the pressure on the inflation rate. In 2008, GDP is expected to grow by 5.5%.
Economic Performance
- Suriname: 2008 Article IV Consultation. source: IMF
Suriname’s narrow economic base makes it prone to macroeconomic volatility. Three commodities (alumina, gold and oil) account for 80 percent of export receipts and 50 percent of GDP, and generate one-fourth of central government revenues. The prices of these products have exhibited large swings, and during the 1990s sharp downturns led to sizable fiscal deficits, external arrears, central bank budget financing and episodes of nearhyperinflation. Weak policy and institutional frameworks have contributed to higher economic volatility and lower growth than in other commodity-exporting countries.
Since the re-appointment of Ronald VENETIAAN's administration in 2005, Suriname’s economic growth has been steadily increasing. Real growth is estimated at 6.4% in 2006 compared to the 5.2% in 2004. Sectoral contribution thrives from a dominating mining industry, where increases in the development of projects for bauxite and gold mining sectors put the country in better economic standing for 2006.
Political stability was another focal point for the Surinamese development in the 21st Century, where proper management of the monetary and fiscal situation must be especially highlighted. A fiscal surplus estimated at 1.4% of GDP was recorded in 2006, as tax contributions by primary product exporters increased thanks to high prices on international markets. Whilst simultaneously, the monetary authorities adopted an expansionary policy. Interest rates on bonds and local reserve requirements fell from 12.5% to 10%, leading to increases in the maximum value of mortgage loans, and commercial banks were able to raise the flow of credit to the public.
In 2006, large amounts of rainfall triggered flooding in the indigenous communities. Socio-economic displacement was estimated at 20-25,000 people of the interior and rural areas. United Nations ECLAC uses a disaster assessment methodology to estimate the socio-economic impacts of a natural disaster. Official statistics on the affected sectors were difficult to estimate; areas such as the education sector, the number of private and public schools were particularly difficult to capture, as records of the situation prior to the flooding were unavailable.(sources: ECLAC Disaster Assessment, Suriname 2-10 November 2006, Floods in Suriname)
Despite this sudden disaster, the formal economy was scarcely affected due to these communities being mostly self-sufficient (except for the budding tourism sector). With this information on the rural areas, the agricultural sector still expanded by 22%, and the balance of payments also showed developments in alumina and gold exports with a decline in imports. In turn, the country enjoyed their first balance of payments surplus for the first time in five years.
From projections, 2007 seems positive for the country of suriname. Once fiscal operations is controlled and international prices remain at a stable pace, then inflation (which was around 15% in 2005, but improved to 5.6% in 2006) could be controlled and hence unemployment.
Economic Statistics
Suriname: Statistical Appendix. August 26, 2008. Source: IMF