Suriname: Economic Outline

Economic Indicators

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In 2021, Suriname's GDP grew by an estimated 1.3%, mainly driven by gold exports. According to updated IMF forecasts, GDP growth is expected to pick up to 2.3% in 2023 and 3% in 2024. The economy remains heavily dependent on mineral sector exports, and the oil sector could attract new foreign investors thanks to the discovery of a new oil fields offshore. In fact, the discovery of new hydrocarbon fields off the coast of Suriname in 2022, as well as the expectation of further discoveries, is expected to boost private investment in 2023, especially FDI. This surge in investment is set to improve the country's economic outlook, with  with a sharp increase in oil production expected from 2025 onward.

According to the IMF, the government balance was in a deficit of 3.1% of GDP in 2022, a rate which is expected to improve to 0.3% in 2023 and 1% in 2024. In September 2020, the Central Bank of Suriname sharply devalued the Surinamese dollar against the U.S. dollar, closing the gap between the official exchange rate and the parallel market rate. As a result, the inflation rate has abruptly increased. In 2022, however, inlfation decreased to 52.5% and it should continue to experience a sharp drop in 2023 and 2024, to 42.7% and 27.3%, respectively. That decline mainly stems from the implementation of a more consolidated monetary policy, with stricter control of money supply, and the expected moderation in global food and energy prices. As for gross debt, Suriname owed 123.2% of its GDP in 2022, with expectations of this rate improving in 2021 and 2022, when debt should account for 112.2% and 103.2% of GDP, respectively. In general, Suriname’s economy is characterised by strong dependence on exports of extractives and a large public sector. Alumina, bauxite, gold and oil have historically made up around 75% of total exports. These factors make the economy vulnerable to shocks from changes in world commodity prices. The Government plays a large role in the economy by employing over half of all workers. State-owned firms also dominate a number of industries. However, in order to maintain its macroeconomic stability, the Government has started a privatisation programme. Challenges include a weak fiscal situation, rising public debt, an underdeveloped monetary policy framework and a vulnerable banking sector, as well as rapid currency depreciation, poor tax collection, corruption in public officials, high rates of inflation, and reduction of foreign aid.

The unemployment rate stood at 10.9% in 2022 and it is expected to slightly decrease to 10.3% in 2023. Furthermore, poverty affects almost half of the population, and children have unequal access to education, especially in the poorer areas. The country also faces problems with access to water and sanitation services. Housing is another big challenge, with a significant number of people living in illegal dwellings on land they do not own. Unskilled labour, underdeveloped infrastructure and restricted access to credit further hinder Suriname's population.

Monetary Indicators	2016	2017	2018	2019	2020
Surinam Dollar (SRD) - Average Annual Exchange Rate For 1 GHS	1.56	1.72	1.63	1.44	1.66

Source: World Bank - Latest available data.

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Latest Update: September 2023