Suriname: Economic Outline

Economic Indicators

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

In 2021, Suriname's GDP grew by an estimated 0.7%, as the country struggled to recover from the lasting effects of COVID-19 pandemic. According to updated IMF forecasts, GDP growth is expected to pick up to 1.5% in 2022 and 2% in 2023. 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.

According to the IMF, the federal budget was in a deficit of 8.2% of GDP in 2021, a rate which is expected to rise to 11.3% in 2022. 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 abruptly increased to 54.4%. However, inflation is predicted experience a sharp drop in 2022 and 2023, to 31.7% and 21.3%, respectively. As for gross debt, Suriname owed 140.6% of its GDP in 2021, with expectations of this rate improving in 2021 and 2022, when debt should account for 137.5% and 138.4% 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. In 2021, the government continued implementing a series of fiscal measures to mitigate the impact of COVID-19, which included increased spending on health services and economic support for households and businesses. Funds were also made available for Surinamese stranded abroad who could not repatriate because of the ban on incoming flights. In 2021, the social support system has been expanded and allowances increased for pensions, disability, children, and the poor. Overall, although the pandemic has significantly impacted the economy, the country has begun to recover thanks to the measures put in place by the government.

The unemployment rate was affected by the negative economic impact of the COVID-19 pandemic, and rose to 11.2% in 2021. However, that rate is expected to slightly decrease in the next couple of years, to 10.9% in 2022 and 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: February 2023