| SURINAME |
Economy:
The economy is dominated by the mining industry, with exports of alumina, gold, and oil
accounting for about 85% of exports and 25% of government revenues, making the
economy highly vulnerable to mineral price volatility. In 2000, the government of Ronald
VENETIAAN, returned to office and inherited an economy with inflation of over 100% and a
growing fiscal deficit. He quickly implemented an austerity program, raised taxes,
attempted to control spending, and tamed inflation. Economic growth reached about 7% in
2008, owing to sizeable foreign investment in mining and oil. Suriname has received aid for
projects in the bauxite and gold mining sectors from Netherlands, Belgium, and the
European Development Fund. The economy slowed in 2009, however, as investment
waned and the country earned less from its commodity exports when global prices for most
commodities fell. Trade picked up, boosting Suriname's economic growth in 2010, but the
government's budget remained strained, with increased social spending during the
election. In January 2011, the government devalued the currency by 20% and raised taxes
to reduce the budget deficit. Suriname's economic prospects for the medium term will
depend on continued commitment to responsible monetary and fiscal policies and to the
introduction of structural reforms to liberalize markets and promote competition.
GDP (purchasing power parity):
$4.711 billion (2010 est.)
country comparison to the world: 165
$4.512 billion (2009 est.)
$4.378 billion (2008 est.)
note: data are in 2010 US dollars
GDP (official exchange rate):
$3.682 billion (2010 est.)
GDP - real growth rate:
4.4% (2010 est.)
country comparison to the world: 87
3.1% (2009 est.)
4.7% (2008 est.)
GDP - per capita (PPP):
$9,700 (2010 est.)
country comparison to the world: 113
$9,400 (2009 est.)
$9,200 (2008 est.)
note: data are in 2010 US dollars
GDP - composition by sector:
agriculture: 10.8%
industry: 24.4%
services: 64.8% (2005 est.)
Exports - commodities:
alumina, gold, crude oil, lumber, shrimp and fish, rice, bananas
Exports - partners:
Canada 35.47%, Belgium 14.92%, US 10.15%, UAE 9.87%, Norway 4.92%, Netherlands
4.7%, France 4.47% (2009)
Imports - commodities:
capital equipment, petroleum, foodstuffs, cotton, consumer goods
Imports - partners:
US 30.79%, Netherlands 19.17%, Trinidad and Tobago 13.04%, China 6.8%, Japan
5.85% (2009)
Executive Summary extracted from IMF Report - Suriname: 2011 Article IV
Consultation (August 2011)
Background. In the context of strong commodity prices, real GDP rose by 4½ percent in
2010, up from 3 percent in 2009. The overall fiscal balance shifted from a surplus of 2.2
percent of GDP on average during 2007–08 to a deficit of 3.3 percent during 2009–10,
pushing public debt up to 21½ percent of GDP at end-2010. In January 2011, the
authorities devalued the currency in the official market by 20 percent against the U.S.
dollar, bringing the rate broadly in line with that in the parallel market. Inflation has risen
sharply in recent months, following the devaluation and increases in fuel prices. The
external current account balance is estimated to have registered a surplus of about
1 percent of GDP in 2010, and international reserves stood at 4½ months of imports at
end-2010.
Focus of consultation.
Discussions focused on the appropriate policy mix both in the
aftermath of the devaluation, with emphasis on containing inflation expectations, and in the
medium term. Staff broadly supported the fiscal stance of the authorities, advising them to
aim at a reduction in the overall fiscal deficit of 2 percent of GDP in 2011. Staff also
advised the authorities to improve the oversight and management of key public utility
companies, while implementing targeted social support programs to cushion the adverse
effects of higher inflation on the most vulnerable groups.
Exchange system.
In conjunction with the devaluation, the authorities did away with an
existing multiple currency practice (MCP), in the form of a special exchange rate for imports
of infant formula. They also established a band (SRD 3.25–3.35 per US$1), within which
foreign exchange market transactions are allowed to take place. Suriname maintains MCPs
subject to Fund approval under Article VIII, Section 3.
Past surveillance.
During the 2009 Article IV consultation, Directors encouraged the
authorities to avoid unsustainable increases in spending and recommended a gradual
implementation of the second phase of the wage reform (FISO-2). In the event, current and
capital expenditures rose significantly, particularly ahead of the May 2010 elections.
Click here to view full report
The economy is dominated by the mining industry, with exports of alumina, gold, and oil
accounting for about 85% of exports and 25% of government revenues, making the
economy highly vulnerable to mineral price volatility. In 2000, the government of Ronald
VENETIAAN, returned to office and inherited an economy with inflation of over 100% and a
growing fiscal deficit. He quickly implemented an austerity program, raised taxes,
attempted to control spending, and tamed inflation. Economic growth reached about 7% in
2008, owing to sizeable foreign investment in mining and oil. Suriname has received aid for
projects in the bauxite and gold mining sectors from Netherlands, Belgium, and the
European Development Fund. The economy slowed in 2009, however, as investment
waned and the country earned less from its commodity exports when global prices for most
commodities fell. Trade picked up, boosting Suriname's economic growth in 2010, but the
government's budget remained strained, with increased social spending during the
election. In January 2011, the government devalued the currency by 20% and raised taxes
to reduce the budget deficit. Suriname's economic prospects for the medium term will
depend on continued commitment to responsible monetary and fiscal policies and to the
introduction of structural reforms to liberalize markets and promote competition.
GDP (purchasing power parity):
$4.711 billion (2010 est.)
country comparison to the world: 165
$4.512 billion (2009 est.)
$4.378 billion (2008 est.)
note: data are in 2010 US dollars
GDP (official exchange rate):
$3.682 billion (2010 est.)
GDP - real growth rate:
4.4% (2010 est.)
country comparison to the world: 87
3.1% (2009 est.)
4.7% (2008 est.)
GDP - per capita (PPP):
$9,700 (2010 est.)
country comparison to the world: 113
$9,400 (2009 est.)
$9,200 (2008 est.)
note: data are in 2010 US dollars
GDP - composition by sector:
agriculture: 10.8%
industry: 24.4%
services: 64.8% (2005 est.)
Exports - commodities:
alumina, gold, crude oil, lumber, shrimp and fish, rice, bananas
Exports - partners:
Canada 35.47%, Belgium 14.92%, US 10.15%, UAE 9.87%, Norway 4.92%, Netherlands
4.7%, France 4.47% (2009)
Imports - commodities:
capital equipment, petroleum, foodstuffs, cotton, consumer goods
Imports - partners:
US 30.79%, Netherlands 19.17%, Trinidad and Tobago 13.04%, China 6.8%, Japan
5.85% (2009)
Executive Summary extracted from IMF Report - Suriname: 2011 Article IV
Consultation (August 2011)
Background. In the context of strong commodity prices, real GDP rose by 4½ percent in
2010, up from 3 percent in 2009. The overall fiscal balance shifted from a surplus of 2.2
percent of GDP on average during 2007–08 to a deficit of 3.3 percent during 2009–10,
pushing public debt up to 21½ percent of GDP at end-2010. In January 2011, the
authorities devalued the currency in the official market by 20 percent against the U.S.
dollar, bringing the rate broadly in line with that in the parallel market. Inflation has risen
sharply in recent months, following the devaluation and increases in fuel prices. The
external current account balance is estimated to have registered a surplus of about
1 percent of GDP in 2010, and international reserves stood at 4½ months of imports at
end-2010.
Focus of consultation.
Discussions focused on the appropriate policy mix both in the
aftermath of the devaluation, with emphasis on containing inflation expectations, and in the
medium term. Staff broadly supported the fiscal stance of the authorities, advising them to
aim at a reduction in the overall fiscal deficit of 2 percent of GDP in 2011. Staff also
advised the authorities to improve the oversight and management of key public utility
companies, while implementing targeted social support programs to cushion the adverse
effects of higher inflation on the most vulnerable groups.
Exchange system.
In conjunction with the devaluation, the authorities did away with an
existing multiple currency practice (MCP), in the form of a special exchange rate for imports
of infant formula. They also established a band (SRD 3.25–3.35 per US$1), within which
foreign exchange market transactions are allowed to take place. Suriname maintains MCPs
subject to Fund approval under Article VIII, Section 3.
Past surveillance.
During the 2009 Article IV consultation, Directors encouraged the
authorities to avoid unsustainable increases in spending and recommended a gradual
implementation of the second phase of the wage reform (FISO-2). In the event, current and
capital expenditures rose significantly, particularly ahead of the May 2010 elections.
Click here to view full report
Background:
First explored by the Spaniards in the 16th
century and then settled by the English in the
mid-17th century, Suriname became a Dutch
colony in 1667. With the abolition of slavery in
1863, workers were brought in from India and
Java. Independence from the Netherlands was
granted in 1975. Five years later the civilian
government was replaced by a military regime
that soon declared a socialist republic. It
continued to exert control through a succession
of nominally civilian administrations until 1987,
when international pressure finally forced a
democratic election. In 1990, the military
overthrew the civilian leadership, but a
democratically elected government - a
four-party coalition - returned to power in 1991.
The coalition expanded to eight parties in 2005
and ruled until August 2010, when voters
returned former military leader Desire
BOUTERSE and his opposition coalition to
power.
Government type:
constitutional democracy
Capital:
name: Paramaribo
time difference: UTC-3 (2 hours ahead of
Washington, DC during Standard
Time)Independence:
25 November 1975 (from the Netherlands)
National holiday:
Independence Day, 25 November (1975)
Constitution:
ratified 30 September 1987; effective 30
October 1987
Legal system:
based on Dutch legal system incorporating
French penal theory; accepts compulsory ICJ
jurisdiction with reservations
Suffrage:
18 years of age; universal
Government:
Chief of state: President Desire Delano
BOUTERSE (since 12 August 2010); Vice
President Robert AMEERALI (since 12 August
2010); note - the president is both the chief of
state and head of government
head of government: President Desire Delano
BOUTERSE (since 12 August 2010); Vice
President Robert AMEERALI (since 12 August
2010)
cabinet: Cabinet of Ministers appointed by the
president
(For more information visit the World Leaders
website Opens in New Window)
elections: president and vice president elected
by the National Assembly or, if no presidential
or vice presidential candidate receives a
two-thirds constitutional majority in the National
Assembly after two votes, by a simple majority
in the larger United People's Assembly (893
representatives from the national, local, and
regional councils), for five-year terms (no term
limits); election last held on 19 July 2010 (next
to be held in 2015)
election results: Desire Delano BOUTERSE
elected president; percent of vote - Desire
Delano BOUTERSE 70.6%, Chandrikapersad
SATOKHI 25.5%, other 3.9%
For names of current Ministers, click here.
Disputes - international:
Area claimed by French Guiana between
Riviere Litani and Riviere Marouini (both
headwaters of the Lawa); Suriname claims a
triangle of land between the New and
Kutari/Koetari rivers in a historic dispute over
the headwaters of the Courantyne; Guyana
seeks United Nations Convention on the Law of
the Sea (UNCLOS) arbitration to resolve the
long-standing dispute with Suriname over the
axis of the territorial sea boundary in potentially
oil-rich waters
All the information on this page sourced from
the CIA World Factbook, the US Commercial
Service and relevant FATF M.E.R.
First explored by the Spaniards in the 16th
century and then settled by the English in the
mid-17th century, Suriname became a Dutch
colony in 1667. With the abolition of slavery in
1863, workers were brought in from India and
Java. Independence from the Netherlands was
granted in 1975. Five years later the civilian
government was replaced by a military regime
that soon declared a socialist republic. It
continued to exert control through a succession
of nominally civilian administrations until 1987,
when international pressure finally forced a
democratic election. In 1990, the military
overthrew the civilian leadership, but a
democratically elected government - a
four-party coalition - returned to power in 1991.
The coalition expanded to eight parties in 2005
and ruled until August 2010, when voters
returned former military leader Desire
BOUTERSE and his opposition coalition to
power.
Government type:
constitutional democracy
Capital:
name: Paramaribo
time difference: UTC-3 (2 hours ahead of
Washington, DC during Standard
Time)Independence:
25 November 1975 (from the Netherlands)
National holiday:
Independence Day, 25 November (1975)
Constitution:
ratified 30 September 1987; effective 30
October 1987
Legal system:
based on Dutch legal system incorporating
French penal theory; accepts compulsory ICJ
jurisdiction with reservations
Suffrage:
18 years of age; universal
Government:
Chief of state: President Desire Delano
BOUTERSE (since 12 August 2010); Vice
President Robert AMEERALI (since 12 August
2010); note - the president is both the chief of
state and head of government
head of government: President Desire Delano
BOUTERSE (since 12 August 2010); Vice
President Robert AMEERALI (since 12 August
2010)
cabinet: Cabinet of Ministers appointed by the
president
(For more information visit the World Leaders
website Opens in New Window)
elections: president and vice president elected
by the National Assembly or, if no presidential
or vice presidential candidate receives a
two-thirds constitutional majority in the National
Assembly after two votes, by a simple majority
in the larger United People's Assembly (893
representatives from the national, local, and
regional councils), for five-year terms (no term
limits); election last held on 19 July 2010 (next
to be held in 2015)
election results: Desire Delano BOUTERSE
elected president; percent of vote - Desire
Delano BOUTERSE 70.6%, Chandrikapersad
SATOKHI 25.5%, other 3.9%
For names of current Ministers, click here.
Disputes - international:
Area claimed by French Guiana between
Riviere Litani and Riviere Marouini (both
headwaters of the Lawa); Suriname claims a
triangle of land between the New and
Kutari/Koetari rivers in a historic dispute over
the headwaters of the Courantyne; Guyana
seeks United Nations Convention on the Law of
the Sea (UNCLOS) arbitration to resolve the
long-standing dispute with Suriname over the
axis of the territorial sea boundary in potentially
oil-rich waters
All the information on this page sourced from
the CIA World Factbook, the US Commercial
Service and relevant FATF M.E.R.
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| Last Updated: 26 September 2011 |