{
  "title": "IMF Executive Board Concludes 2019 Article IV Consultation with Suriname",
  "publication": "IMF News, December 12, 2019",
  "sourceUrl": "https://www.imf.org/en/news/articles/2019/12/12/pr19456-suriname-imf-executive-board-concludes-article-iv-consultation",
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  "summary": "Press Release No. 19/456",
  "publishDate": "2019-12-12",
  "sections": [
    {
      "heading": "Overview and press details",
      "content": "- Press Release No. 19/456\n- December 12, 2019\n- IMF Communications Department\n- PRESS OFFICER: Randa Elnagar\n- Phone: +1 202 623-7100 Email: MEDIA@IMF.org\n- On December 11, 2019, the Executive Board of the International Monetary Fund (IMF) concluded the 2019 Article IV consultation with Suriname."
    },
    {
      "heading": "Economic performance and outlook",
      "content": "- Real GDP grew by 2.6 percent in 2018, following 1.8 percent in 2017.\n- Activity growth has been broad based with expansions in wholesale and retail trade, construction, hotels, restaurants, and manufacturing, while mining has remained stable.\n- Inflation has fallen below 5 percent mainly arising from exchange rate stability and control over excess liquidity.\n- The unemployment rate was 7.6 percent in 2017 and is expected to have declined further in 2018.\n- Real GDP is expected to expand annually by 2¼ to 2½ percent during 2019−24, while inflation is expected to remain low.\n- The balance of risks to this outlook is negative, mainly due to fiscal imbalances.\n- The overall fiscal deficit is expected to reach 8.6 percent of GDP in 2019 while public debt remains high at around 72 percent of GDP."
    },
    {
      "heading": "Executive Board assessment — key messages",
      "content": "- Directors took positive note that the Surinamese economy is growing steadily, with a falling unemployment rate, low inflation, and a stable exchange rate.\n- Directors stressed that stabilization presents an opportunity to address central challenges: a weak fiscal position and rising public debt; monetary and financial supervision frameworks that need enhancement; a low degree of economic diversification; and other structural impediments to growth.\n- Timely action is necessary to reduce macroeconomic vulnerabilities and downside risks."
    },
    {
      "heading": "Fiscal policy and public debt",
      "content": "- Directors underscored the importance of putting public debt on a sustained downward path.\n- They were encouraged by the authorities’ fiscal plans and emphasized the need to:\n  - phase out electricity sector subsidies,\n  - implement the VAT,\n  - continue to improve revenue and expenditure administration.\n- Implementing these measures, while also protecting vulnerable households, would be instrumental in creating space for public investment and supporting long-term growth.\n- Directors welcomed the passage of the public financial management law."
    },
    {
      "heading": "Monetary policy, central bank, and financial sector",
      "content": "- Directors expressed concern about the resumption of monetary financing of the budget this year but welcomed the authorities’ plan to avoid any further such financing, including through a new Bank Act.\n- They welcomed the recent introduction of new monetary tools and instruments and the preparation of several draft legislation to enhance the monetary framework.\n- Directors recommended that the central bank should:\n  - publish explicit monetary targets,\n  - further expand their operational tool box to implement effectively a reserve money target,\n  - further strengthen coordination with the government on liquidity projections and operations.\n- Directors generally agreed that a more flexible exchange rate is needed to act as a shock absorber.\n- On the financial sector, Directors:\n  - recognized important vulnerabilities,\n  - urged the central bank to revamp its supervisory actions and take a more assertive approach to ensuring banks’ return to compliance with regulatory requirements over a pre-determined time horizon,\n  - recommended establishment of a comprehensive crisis management system to give the central bank the power to intervene in banks’ governance and operations when necessary, and to improve bank resolution.\n- Directors looked forward to approval of draft legislation in these areas as soon as feasible.\n- Directors were encouraged that the authorities have embarked on a national risk assessment this year to further enhance the AML/CFT framework."
    },
    {
      "heading": "Structural policies and labor market",
      "content": "- Directors underscored the importance of diversifying the economy and implementing structural reforms to boost potential growth.\n- Key areas highlighted:\n  - addressing the high costs of doing business,\n  - reforming the investment framework,\n  - strengthening governance to support investor confidence.\n- Investment in education and labor market reforms, combined with a meaningful safety net for the unemployed, will be important.\n- Directors were encouraged by recent laws on the minimum wage and the enhancement of maternity and paternity support.\n- They welcomed the authorities’ commitment to strengthen governance in the extractive sector."
    },
    {
      "heading": "Selected economic indicators (as presented)",
      "content": "- Real GDP (percent change): -5.6 (2016); 1.8 (2017); 2.6 (2018); 2.3 (2019); 2.5 (2020); 2.4 (2021); 2.0 (2022); [no value shown for 2023]; [no value shown for 2024]\n- Nominal GDP: 19.1 (2016); 23.3 (2017); 7.4 (2018); 11.8 (2019); 12.6 (2020); 8.0 (2021); 10.7 (2022); 6.0 (2023); 6.7 (2024)\n- GDP deflator: 26.2 (2016); 21.2 (2017); 4.6 (2018); 9.3 (2019); 9.9 (2020); 5.5 (2021); 8.5 (2022); 3.6 (2023); 4.1 (2024)\n- Consumer prices (period average): 55.5 (2016); 22.0 (2017); 6.9 (2018); 4.5 (2019); 5.8 (2020); 4.7 (2021); 10.2 (2022); 5.1 (2023); 4.8 (2024)\n- Consumer prices (end of period): 52.4 (2016); 5.4 (2017); 5.7 (2018); 8.3 (2019); 5.2 (2020); 4.4 (2021)\n- Unemployment rate: 9.7 (2016); 7.6 (2017); 7.1 (2018); 6.3 (2019); 5.9 (2020)\n- Labor force participation rate: 59.6 (2016); 59.9 (2017); 60.2 (2018); 60.6 (2019); 60.9 (2020); 61.2 (2021); 61.5 (2022); 61.8 (2023); 62.2 (2024)\n- Broad money (constant exchange rate, percent change): 8.6 (2016); 8.1 (2017); 9.5 (2018); 9.4 (2019); 7.5 (2020); 7.0 (2021)\n- Broad money (local currency; percent of GDP): 27.7 (2016); 25.3 (2017); 28.0 (2018); 28.8 (2019); 29.3 (2020); 29.7 (2021); 29.4 (2022); 30.2 (2023); 30.7 (2024)\n- Reserve money (constant exchange rate, percent change): 22.2 (2016); 35.4 (2017); 14.8 (2018)\n- Reserve money (percent of GDP): 15.4 (2016); 15.3 (2017); 19.3 (2018); 19.9 (2019); 20.1 (2020); 19.7 (2021); 20.2 (2022); 20.4 (2023)\n- Private sector credit (constant exchange rate, percent change): -5.7 (2016); 0.9 (2017); -4.5 (2018); -4.7 (2019); 12.8 (2020); 10.6 (2021); 14.5 (2022)\n- Private sector credit (percent of GDP): 38.6 (2016); 31.7 (2017); 28.2 (2018); 24.3 (2019); 23.4 (2020); 24.8 (2021); 25.0 (2022); 27.1 (2023); 28.9 (2024)\n- Central government revenue and grants (percent of GDP): 18.9 (2016); 23.9 (2017); 25.4 (2018); 24.9 (2019); 26.3 (2020); 26.0 (2021)\n- Central government total expenditure (percent of GDP): 30.9 (2016); 31.0 (2017); 34.0 (2018); 33.8 (2019); 33.2 (2020); 32.7 (2021); 33.5 (2022)\n- Central government primary expenditure (percent of GDP): 26.6 (2016); 29.9 (2017); 29.1 (2018); 28.7 (2019)\n- Overall balance (net lending/borrowing) 1/ (percent of GDP): -9.1 (2016); -8.8 (2017); -7.1 (2018); -8.6 (2019); -8.9 (2020); -8.2 (2021); -6.4 (2022); -7.6 (2023); -7.5 (2024)\n- Primary balance (percent of GDP): -6.5 (2016); -5.3 (2017); -3.5 (2018); -4.8 (2019); -5.0 (2020); -4.1 (2021); -2.7 (2022); -2.6 (2023)\n- Net acquisition of financial assets 2/: 13.2 (2016); 0.3 (2017); -11.9 (2018)\n- Net incurrence of liabilities: 22.3 (2016); 9.1 (2017); 8.9 (2018); 8.2 (2019); 6.4 (2020)\n- Net domestic financing: -11.1 (2016); 2.8 (2017); 2.7 (2018)\n- Net external financing: 1.4 (2016); 6.1 (2017); 4.2 (2018); 5.0 (2019); 4.9 (2020)\n- Central government debt (percent of GDP) 3/: 76.1 (2016); 74.6 (2017); 72.1 (2018); 72.3 (2019); 79.5 (2020); 83.8 (2021); 87.4 (2022)\n  - Domestic: 21.4 (2016); 22.4 (2017); 22.5 (2018); 21.0 (2019); 21.8 (2020); 23.8 (2021); 25.6 (2022); 27.2 (2023)\n  - External: 54.7 (2016); 52.2 (2017); 49.6 (2018); 51.3 (2019); 52.8 (2020); 56.3 (2021); 55.7 (2022); 58.2 (2023); 60.1 (2024)\n- Current account balance (percent of GDP): -5.1 (2016); 1.9 (2017); -3.4 (2018); -6.1 (2019); -5.9 (2020); -3.3 (2021); -4.3 (2022)\n- Capital and financial account: 16.1 (2016); 3.5 (2017)\n- Overall balance: 1.6 (2016); 1.3 (2017); 3.4 (2018); -0.1 (2019); -0.2 (2020); -0.6 (2021)\n- Change in reserves (- = increase): -1.6 (2016); -1.3 (2017); 0.1 (2018); -0.9 (2019); 0.2 (2020); 0.6 (2021)\n- GDP at current prices (SRD billions): 19.5 (2016); 24.0 (2017); 25.8 (2018); 32.5 (2019); 35.1 (2020); 38.8 (2021); 41.2 (2022); 43.9 (2023)\n- Terms of trade (percent change): -2.8 (2016); -3.7 (2017); 7.7 (2018); 1.0 (2019); -0.5 (2020)\n- Gross international reserves (USD millions): 381 (2016); 424 (2017); 581 (2018); 710 (2019); 819 (2020); 814 (2021); 857 (2022); 847 (2023); 813 (2024)\n- In months of imports: 2.9 (2016); 3.7 (2017); 3.3 (2018)\n- Gold price (USD per troy ounce): 1,248 (2016); 1,257 (2017); 1,269 (2018); 1,400 (2019); 1,531 (2020); 1,558 (2021); 1,580 (2022); 1,599 (2023); 1,619 (2024)\n- Oil price (USD per barrel): 42.8 (2016); 68.3 (2017); 57.9 (2018); 55.3 (2019); 54.6 (2020)"
    },
    {
      "heading": "Notes and data sources",
      "content": "- Sources: Surinamese authorities and Fund staff calculations and projections.\n- 1/ The overall balance is computed using net financial transactions, and therefore, includes statistical discrepancy.\n- 2/ Includes acquisition of stake in gold mine and loans to state-owned enterprises.\n- 3/ The debt-to-GDP ratio is different when computed using the definition in the Government Debt Act of Suriname.\n\nIMF Executive Board Concludes 2019 Article IV Consultation with Suriname — Press Release No. 19/456, December 12, 2019.\n\n---\n\n\n References\n\n- https://www.imf.org/-/media/images/imf/bios/imfboard.jpg\n- The Executive Board\n- Suriname and the IMF\n- IMF Policy Advice -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- http://www.imf.org/external/np/sec/misc/qualifiers.htm\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2019/12/12/pr19456-suriname-imf-executive-board-concludes-article-iv-consultation"
    }
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    "Published: December 12, 2019",
    "Press Release No. 19/456",
    "December 12, 2019",
    "IMF Communications Department",
    "PRESS OFFICER: Randa Elnagar",
    "Phone: +1 202 623-7100 Email: MEDIA@IMF.org",
    "On December 11, 2019, the Executive Board of the International Monetary Fund (IMF) concluded the 2019 Article IV consultation with Suriname.",
    "Real GDP grew by 2.6 percent in 2018, following 1.8 percent in 2017.",
    "Activity growth has been broad based with expansions in wholesale and retail trade, construction, hotels, restaurants, and manufacturing, while mining has remained stable.",
    "Inflation has fallen below 5 percent mainly arising from exchange rate stability and control over excess liquidity.",
    "The unemployment rate was 7.6 percent in 2017 and is expected to have declined further in 2018.",
    "Real GDP is expected to expand annually by 2¼ to 2½ percent during 2019−24, while inflation is expected to remain low.",
    "The balance of risks to this outlook is negative, mainly due to fiscal imbalances.",
    "The overall fiscal deficit is expected to reach 8.6 percent of GDP in 2019 while public debt remains high at around 72 percent of GDP.",
    "Directors took positive note that the Surinamese economy is growing steadily, with a falling unemployment rate, low inflation, and a stable exchange rate.",
    "Directors stressed that stabilization presents an opportunity to address central challenges: a weak fiscal position and rising public debt; monetary and financial supervision frameworks that need enhancement; a low degree of economic diversification; and other structural impediments to growth.",
    "Timely action is necessary to reduce macroeconomic vulnerabilities and downside risks.",
    "Directors underscored the importance of putting public debt on a sustained downward path.",
    "They were encouraged by the authorities’ fiscal plans and emphasized the need to:",
    "Implementing these measures, while also protecting vulnerable households, would be instrumental in creating space for public investment and supporting long-term growth.",
    "Directors welcomed the passage of the public financial management law.",
    "Directors expressed concern about the resumption of monetary financing of the budget this year but welcomed the authorities’ plan to avoid any further such financing, including through a new Bank Act.",
    "They welcomed the recent introduction of new monetary tools and instruments and the preparation of several draft legislation to enhance the monetary framework.",
    "Directors recommended that the central bank should:",
    "Directors generally agreed that a more flexible exchange rate is needed to act as a shock absorber.",
    "On the financial sector, Directors:",
    "Directors looked forward to approval of draft legislation in these areas as soon as feasible.",
    "Directors were encouraged that the authorities have embarked on a national risk assessment this year to further enhance the AML/CFT framework.",
    "Directors underscored the importance of diversifying the economy and implementing structural reforms to boost potential growth.",
    "Key areas highlighted:",
    "Investment in education and labor market reforms, combined with a meaningful safety net for the unemployed, will be important.",
    "Directors were encouraged by recent laws on the minimum wage and the enhancement of maternity and paternity support.",
    "They welcomed the authorities’ commitment to strengthen governance in the extractive sector.",
    "Real GDP (percent change): -5.6 (2016); 1.8 (2017); 2.6 (2018); 2.3 (2019); 2.5 (2020); 2.4 (2021); 2.0 (2022); [no value shown for 2023]; [no value shown for 2024]",
    "Nominal GDP: 19.1 (2016); 23.3 (2017); 7.4 (2018); 11.8 (2019); 12.6 (2020); 8.0 (2021); 10.7 (2022); 6.0 (2023); 6.7 (2024)",
    "GDP deflator: 26.2 (2016); 21.2 (2017); 4.6 (2018); 9.3 (2019); 9.9 (2020); 5.5 (2021); 8.5 (2022); 3.6 (2023); 4.1 (2024)",
    "Consumer prices (period average): 55.5 (2016); 22.0 (2017); 6.9 (2018); 4.5 (2019); 5.8 (2020); 4.7 (2021); 10.2 (2022); 5.1 (2023); 4.8 (2024)",
    "Consumer prices (end of period): 52.4 (2016); 5.4 (2017); 5.7 (2018); 8.3 (2019); 5.2 (2020); 4.4 (2021)",
    "Unemployment rate: 9.7 (2016); 7.6 (2017); 7.1 (2018); 6.3 (2019); 5.9 (2020)",
    "Labor force participation rate: 59.6 (2016); 59.9 (2017); 60.2 (2018); 60.6 (2019); 60.9 (2020); 61.2 (2021); 61.5 (2022); 61.8 (2023); 62.2 (2024)",
    "Broad money (constant exchange rate, percent change): 8.6 (2016); 8.1 (2017); 9.5 (2018); 9.4 (2019); 7.5 (2020); 7.0 (2021)",
    "Broad money (local currency; percent of GDP): 27.7 (2016); 25.3 (2017); 28.0 (2018); 28.8 (2019); 29.3 (2020); 29.7 (2021); 29.4 (2022); 30.2 (2023); 30.7 (2024)",
    "Reserve money (constant exchange rate, percent change): 22.2 (2016); 35.4 (2017); 14.8 (2018)",
    "Reserve money (percent of GDP): 15.4 (2016); 15.3 (2017); 19.3 (2018); 19.9 (2019); 20.1 (2020); 19.7 (2021); 20.2 (2022); 20.4 (2023)",
    "Private sector credit (constant exchange rate, percent change): -5.7 (2016); 0.9 (2017); -4.5 (2018); -4.7 (2019); 12.8 (2020); 10.6 (2021); 14.5 (2022)",
    "Private sector credit (percent of GDP): 38.6 (2016); 31.7 (2017); 28.2 (2018); 24.3 (2019); 23.4 (2020); 24.8 (2021); 25.0 (2022); 27.1 (2023); 28.9 (2024)",
    "Central government revenue and grants (percent of GDP): 18.9 (2016); 23.9 (2017); 25.4 (2018); 24.9 (2019); 26.3 (2020); 26.0 (2021)",
    "Central government total expenditure (percent of GDP): 30.9 (2016); 31.0 (2017); 34.0 (2018); 33.8 (2019); 33.2 (2020); 32.7 (2021); 33.5 (2022)",
    "Central government primary expenditure (percent of GDP): 26.6 (2016); 29.9 (2017); 29.1 (2018); 28.7 (2019)",
    "Overall balance (net lending/borrowing) 1/ (percent of GDP): -9.1 (2016); -8.8 (2017); -7.1 (2018); -8.6 (2019); -8.9 (2020); -8.2 (2021); -6.4 (2022); -7.6 (2023); -7.5 (2024)",
    "Primary balance (percent of GDP): -6.5 (2016); -5.3 (2017); -3.5 (2018); -4.8 (2019); -5.0 (2020); -4.1 (2021); -2.7 (2022); -2.6 (2023)",
    "Net acquisition of financial assets 2/: 13.2 (2016); 0.3 (2017); -11.9 (2018)",
    "Net incurrence of liabilities: 22.3 (2016); 9.1 (2017); 8.9 (2018); 8.2 (2019); 6.4 (2020)",
    "Net domestic financing: -11.1 (2016); 2.8 (2017); 2.7 (2018)",
    "Net external financing: 1.4 (2016); 6.1 (2017); 4.2 (2018); 5.0 (2019); 4.9 (2020)",
    "Central government debt (percent of GDP) 3/: 76.1 (2016); 74.6 (2017); 72.1 (2018); 72.3 (2019); 79.5 (2020); 83.8 (2021); 87.4 (2022)",
    "Current account balance (percent of GDP): -5.1 (2016); 1.9 (2017); -3.4 (2018); -6.1 (2019); -5.9 (2020); -3.3 (2021); -4.3 (2022)",
    "Capital and financial account: 16.1 (2016); 3.5 (2017)",
    "Overall balance: 1.6 (2016); 1.3 (2017); 3.4 (2018); -0.1 (2019); -0.2 (2020); -0.6 (2021)",
    "Change in reserves (- = increase): -1.6 (2016); -1.3 (2017); 0.1 (2018); -0.9 (2019); 0.2 (2020); 0.6 (2021)",
    "GDP at current prices (SRD billions): 19.5 (2016); 24.0 (2017); 25.8 (2018); 32.5 (2019); 35.1 (2020); 38.8 (2021); 41.2 (2022); 43.9 (2023)",
    "Terms of trade (percent change): -2.8 (2016); -3.7 (2017); 7.7 (2018); 1.0 (2019); -0.5 (2020)",
    "Gross international reserves (USD millions): 381 (2016); 424 (2017); 581 (2018); 710 (2019); 819 (2020); 814 (2021); 857 (2022); 847 (2023); 813 (2024)",
    "In months of imports: 2.9 (2016); 3.7 (2017); 3.3 (2018)",
    "Gold price (USD per troy ounce): 1,248 (2016); 1,257 (2017); 1,269 (2018); 1,400 (2019); 1,531 (2020); 1,558 (2021); 1,580 (2022); 1,599 (2023); 1,619 (2024)",
    "Oil price (USD per barrel): 42.8 (2016); 68.3 (2017); 57.9 (2018); 55.3 (2019); 54.6 (2020)",
    "Sources: Surinamese authorities and Fund staff calculations and projections.",
    "1/ The overall balance is computed using net financial transactions, and therefore, includes statistical discrepancy.",
    "2/ Includes acquisition of stake in gold mine and loans to state-owned enterprises.",
    "3/ The debt-to-GDP ratio is different when computed using the definition in the Government Debt Act of Suriname.",
    "[https://www.imf.org/-/media/images/imf/bios/imfboard.jpg](https://www.imf.org/-/media/images/imf/bios/imfboard.jpg)",
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    "[Suriname and the IMF](http://www.imf.org/external/country/SUR/index.htm)",
    "[IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
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